Disney’s Billion-Dollar Bet on AI: A Cinematic Shift

The Walt Disney Company announced a landmark agreement with OpenAI. Under this three-year licensing agreement, the Sora neural network will legally create short videos for social media using over 200 characters from Disney, Marvel, Pixar, and Star Wars. But that’s not all. One might think OpenAI would pay Disney for such opportunities, but instead, Disney will invest $1 billion in OpenAI, securing APIs to create new products, tools, and opportunities, including for Disney+, while also integrating ChatGPT for their employees.

An intriguing detail of the agreement is that a selection of those same short videos generated by Sora featuring Disney characters will be available for viewing on Disney+. This means AI-generated videos will appear on the subscription service. It seems this will be the first time such content is presented in such a scope and for such a renowned company.

With technological innovations constantly shaping the evolution of the entertainment industry, new ways of creating and distributing great stories worldwide are emerging. The rapid development of artificial intelligence marks a significant moment for our sector, and through this collaboration with OpenAI, we will thoughtfully and responsibly expand the reach of our storytelling through generative AI, while respecting and protecting creators and their works.

The combination of Disney’s iconic stories and characters with OpenAI’s groundbreaking technology brings imagination and creativity directly to Disney fans, offering them richer and more personal ways to interact with beloved Disney characters and stories.