By: Nick Gambino

Disney has just hammered out a deal with OpenAI that will allow Disney characters to be used in generative AI. In return, Disney is going to make a $1 billion equity investment in the tech company.

This is either a pivotal and historical deal ushering in a new age for tech and entertainment or it’ll go down as a cautionary tale of epic proportions. Only time will tell, not the million and one think pieces about it.

“The Walt Disney Company and OpenAI have reached an agreement for Disney to become the first major content licensing partner on Sora, OpenAI’s short-form generative AI video platform, bringing these leaders in creativity and innovation together to unlock new possibilities in imaginative storytelling,” a joint press release from Disney and OpenAI reads.

The deal allows users to generate short videos in Sora that feature over 200 characters from across the Disney panoply. The entertainment giant has one of the most impressive cache of characters including those from Marvel, Pixar, Star Wars and of course the classics like Mickey Mouse, Snow White and so many others from nearly 100 years of animated film. It’s not entirely clear what characters will make an appearance in Sora. 

What we do know is that a select number of these fan-made AI videos will be placed on Disney+, which is absolutely wild. Imagine seeing your own video “created” by feeding prompts into an AI generator show up on one of the biggest streaming services. Again, this is either a genius idea or it’s one that risks turning the streaming service into an AI slop field. 

I can’t help but wonder if this is a way to keep better tabs on what AI is doing with Disney properties. If they can rein it in and control it, there’s less room for damage to the Mickey brand. It’s kind of a “keep your friends close and your enemies closer” thing. It’s just that this enemyship comes with a $1 billion price tag.