• Disney will invest $1 billion in OpenAI to enhance its Sora video tool.
• The partnership allows users to create videos featuring over 200 iconic Disney characters.
• The agreement excludes actor likenesses and voices while promoting responsible AI use.
• User-generated videos will be available on Disney+ starting in 2026.
• This marks a significant shift in Disney's approach towards AI technology, moving from litigation to collaboration.

The Walt Disney Company announced a significant investment of $1 billion in OpenAI, along with a three-year content licensing agreement that will allow OpenAI's Sora, a video generation tool, to feature over 200 characters from Disney franchises including Marvel and Pixar. This marks Disney's first major partnership with a tech company for character licensing, reinforcing a shift in the industry's outlook toward AI technologies, according to Reuters, CBS News, and India Times.

Starting in early 2026, Sora users will be able to create short videos featuring beloved characters such as Mickey Mouse, Iron Man, and Cinderella. The deal aims to combine the creative potential of AI with Disney's extensive intellectual property, fostering user engagement while maintaining control over character depictions, according to SFGate and BBC.

OpenAI CEO Sam Altman expressed optimism about this collaboration, stating that it exemplifies how AI can enhance creativity and connect stories with broader audiences. Conversely, Disney CEO Bob Iger noted that the investment allows the company to "thoughtfully and responsibly extend the reach of our storytelling through generative AI," emphasizing a commitment to protecting creators’ rights, as mentioned by Anadolu Agency and Le Monde.

This deal comes after Disney previously adopted a litigation-heavy stance against AI-related copyright infringements, illustrating a notable turnaround in their strategy towards the technology. It also reflects growing concerns in Hollywood regarding the potential impact of AI on creative jobs and intellectual property rights, as highlighted by NPR and Channel News Asia.