The Walt Disney Company has revealed a historic equity investment of $1 billion in OpenAI, coupled with an innovative three-year licensing agreement. This announcement, made on Thursday, December 11, 2025, signifies a significant change in Hollywood’s approach to generative artificial intelligence, positioning Disney as the first major licensing collaborator with OpenAI’s text-to-video model, Sora. The move coincides with Disney sending cease-and-desist notices to other tech companies, such as Google, for their unauthorized use of its copyrighted characters to train AI.
The Essence of the Contract: Character Licensing with Safeguards
The focal point of the agreement is the licensing deal that permits OpenAI to employ over 200 beloved Disney, Marvel, Pixar, and Star Wars characters in its generative AI applications, primarily Sora and ChatGPT Images. Beginning in early 2026, fans will have the opportunity to generate and share short videos and images driven by user prompts featuring iconic figures like Mickey Mouse, Iron Man, and Darth Vader. This arrangement allows for the inclusion of costumes, props, vehicles, and settings from these franchises. Notably, the agreement includes stringent restrictions, such as the outright prohibition of using actors’ likenesses and voices, a critical concession intended to safeguard artists amidst industry concerns about AI replication. In addition, Disney and OpenAI are committing to implementing safety protocols, including content moderation and enhanced filters to prevent the generation of content that includes violence, political topics, or any context deemed inappropriate for Disney’s family-friendly characters.
This decision represents a remarkable turnaround for Disney, which has previously been one of the most vocal opponents of unauthorized use of its copyrighted material by AI companies. CEO Bob Iger commented that the partnership will “thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works,” framing the agreement as a model for how significant content owners can actively monetize their intellectual property in the era of generative AI.
A Two-Way Collaboration
In addition to the licensing and the considerable $1 billion equity investment (which includes options for more shares), the partnership positions Disney as a key customer of OpenAI. This dual-strategy partnership focuses on two primary areas. First, Disney plans to utilize ChatGPT throughout its workforce for various tasks, including research and marketing, and will employ OpenAI’s APIs to develop new products and tools, particularly for its Disney+ streaming service, aimed at boosting internal productivity and supporting creative endeavors. Second, in a pioneering move for a major streaming service, a curated array of user-generated videos created using Sora featuring Disney characters will be made available for streaming on Disney+. This initiative creates a new official platform for fan interaction and content discovery, transforming user-generated content from a potential legal issue into an organized, monetizable resource. The agreement, still awaiting final board approvals and closing conditions, establishes a new commercial model for collaboration between Hollywood and Silicon Valley concerning generative AI, potentially paving the way for other significant intellectual property holders to capitalize on their extensive content libraries.
