Disney has agreed to invest $1 billion (£740 million) in OpenAI as part of a landmark partnership that will allow users to generate images and videos featuring more than 200 of the entertainment giant’s iconic characters through ChatGPT and OpenAI’s video-generation tool, Sora.
The agreement, announced on Thursday, marks the first time a major Hollywood studio has licensed part of its catalogue to an AI developer. It represents a major shift in how studios may collaborate with artificial intelligence firms amid rising tensions in the creative industry over copyright, talent likeness, and future job security.
Under the deal, characters from Pixar, Marvel, Star Wars and major Disney animation franchises such as Moana, Zootopia and Encanto will become available for creative use within OpenAI tools starting early 2026. Classic figures such as Mickey Mouse and Minnie Mouse are also included.
However, Disney clarified that the agreement “does not include any talent likenesses or voices”, leaving questions about how closely the AI-generated characters will resemble their on-screen counterparts in sound and performance.
Disney CEO Bob Iger described the collaboration as a significant step in the evolution of digital creativity.
“The rapid advancement of artificial intelligence marks an important moment for our industry,” Iger said. “Through this collaboration with OpenAI we will thoughtfully and responsibly extend the reach of our storytelling.”
The announcement comes against the backdrop of ongoing legal and ethical battles over AI use in entertainment. Reports indicate that Disney has issued a cease-and-desist letter to Google, accusing the tech company of infringing its copyrights “on a massive scale”. Google has yet to respond.
Legal experts say the OpenAI deal reflects a growing trend among major rights holders seeking to formalise relationships with AI developers. Joel Smith, intellectual property partner at Simmons & Simmons, noted that the agreement shows “rights owners and major AI developers are moving fast to strike collaborative licensing deals to access content for training and future use.”
The actors’ union Equity said the deal underscores why performers are pressing for stronger protections around AI. The union is currently balloting thousands of members on whether they should refuse digital scans on set until better safeguards are secured.
“The recorded material that will be sold on as part of this eye-watering big money deal is the result of creatives’ professional work, and their rights must be protected,” said Cathy Sweet, Equity’s head of TV and Film.
Sora, known for its highly realistic video output, has drawn criticism for enabling deepfake videos of deceased public figures. OpenAI paused the tool’s ability to generate images of Dr Martin Luther King Jr earlier this year after the system produced “disrespectful” depictions of the civil rights icon.
Similar AI-generated videos of President John F. Kennedy, Queen Elizabeth II, Stephen Hawking, and other public figures have triggered backlash, with some families calling on OpenAI to intervene.
The issue of digital recreations has also touched the music industry. In November, Warner Music Group announced a partnership with AI music start-up Suno, a year after suing the firm in a high-profile copyright case.
Disney’s new partnership with OpenAI is expected to intensify conversations within Hollywood about where creative boundaries should be drawn as artificial intelligence becomes more integrated into entertainment production.
