Disney seals $1bn deal with OpenAI: Here's every detail you need to know

Disney is striking a deal with OpenAI by investing a $1 billion equity stake that would allow its famous characters to be used on Sora, the AI giant’s video creation platform.

Sora was launched in September this year and aims to be a TikTok-like video generation platform, where only AI-generated videos can be posted.

The agreed agreement offers something for their fans as well, as the latter would be able to generate and post AI-generated video content featuring more than 200 characters from Disney, Marvel, Pixar, and Star Wars franchises on OpenAI’s platforms such as Sora and ChatGPT.

Amid doubts over its business model, OpenAI strikes this deal even as costs outpace revenue, despite having nearly a billion users globally.

Disney’s investment in OpenAI is the first such major licensing agreement for Sora.

The move is making waves across the entertainment world, as Disney is unfolding a new chapter of artificial intelligence.

The agreement reportedly will last for three years, investing $1 billion to bring advanced AI tools into its movies, apps, and fan experiences.

Disney CEO Robert Iger appeared for an interview on CNBC, expressing hopes the deal would extend the storytelling of the company, saying” The collaboration would thoughtfully and responsibly extend the reach of our storytelling.”

While brushing off rumors that the deal would threaten creators, he said, “This doesn’t in any way represent a threat to the creators at all—in fact the opposite. I think it honors them and respects them, in part because there’s a license fee associated with it.”

Characters available for fan creators will include Mickey Mouse, Elsa from Frozen, Minnie Mouse, and Marvel heroes like Iron Man and Captain America, as well as Star Wars icons including Darth Vader and Yoda.