Disney dazzles Hollywood and Wall Street with $1bn deal granting OpenAI access to its vault

Disney is taking a bold step into the AI era — and letting fans play with some of its most famous characters in a way never seen before.

The entertainment giant has struck a landmark deal with OpenAI that will allow its new video tool, Sora, to generate short Disney-themed clips on demand. Fans will be able to type in a prompt and instantly produce videos featuring more than 200 characters from the Disney, Marvel, Pixar and Star Wars franchises.

Disney is plowing $1 billion into OpenAI, marking the first time a major Hollywood studio has opened its vault to generative video technology. Mickey Mouse, Ariel, Simba, Baymax, Black Panther, Loki, Darth Vader and Stormtroopers are among the figures allowed into the AI playground. Costumes, props, ships, castles and planets are also included.

Users will not be able to unlock real actors' faces or voices, as only 'animated, masked and creature characters' are part of the deal. Fans can play with animated versions of characters played by actors, including Captain America, Thor, Han Solo and Luke Skywalker.

The company also plans to use ChatGPT across its business, including Disney+ and in internal tools for staff.

The two firms say the move will let fans create mini-movies and images that look like they came straight from Disney's animation labs. Early versions are expected to launch in 2026. Disney+ subscribers will also see curated AI-generated shorts appear on the platform, and the two companies are developing new ways for viewers to interact with shows and characters using the technology.

Both firms insist the partnership will be 'responsible,' with safeguards to stop inappropriate content and protections for artists whose work underpins the characters.

'Technological innovation has continually shaped the evolution of entertainment, bringing with it new ways to create and share great stories with the world,' Disney CEO Bob Iger said in a statement. 'The rapid advancement of artificial intelligence marks an important moment for our industry, and through this collaboration with OpenAI we will thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works.'

OpenAI chief executive Sam Altman said Disney remains the 'gold standard' of global entertainment. 'This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences,' he said in a statement.

The deal is still subject to final approvals.

The Implications of the Partnership

This partnership between Disney and OpenAI represents a significant shift in how entertainment content is created and consumed. By integrating AI into its creative process, Disney is not only enhancing its storytelling capabilities but also opening up new avenues for fan engagement. The ability to generate personalized content based on user input could revolutionize how audiences interact with beloved characters and stories.

However, this move has also raised questions about the future of traditional animation and the role of human artists in the creative process. Some animators and fans have expressed concerns about the potential loss of authenticity and the impact on the craft of animation.

Potential Challenges and Concerns

While the partnership promises exciting opportunities, it also brings challenges. One of the primary concerns is the ethical use of AI in content creation. Ensuring that the generated content adheres to Disney's high standards and maintains the integrity of its characters is crucial. Additionally, there is a need for robust measures to prevent the misuse of AI-generated content, such as deepfakes or other forms of manipulation.

Another challenge is the potential backlash from fans who may feel that the use of AI detracts from the magic of Disney's storytelling. As seen in recent controversies, even minor changes or missteps in AI-generated content can lead to public outcry. For instance, the AI-generated image of Mickey Mouse with a 'disturbing toothy smile' sparked significant criticism, highlighting the sensitivity around character representation.

The Future of Disney and AI

Looking ahead, Disney's collaboration with OpenAI could set a precedent for other entertainment companies. If successful, this partnership might encourage more studios to explore AI as a tool for content creation, leading to a new era of interactive and personalized storytelling.

Moreover, the integration of AI into platforms like Disney+ could enhance user experience by offering tailored content recommendations and interactive features. This could potentially increase viewer engagement and loyalty, providing a competitive edge in the streaming market.

As the entertainment industry continues to evolve, the balance between technological innovation and artistic integrity will remain a critical focus. Disney's approach to this partnership could serve as a model for responsible AI usage, ensuring that the magic of storytelling is preserved while embracing the possibilities of new technology.