Disney Backs OpenAI With $1 Billion Investment, Allowing Fans to Create AI Videos Using Marvel, Pixar and Star Wars Characters

Disney Invests $1 Billion In OpenAI To Bring Star Wars, Pixar And Marvel Characters To AI Video Platform

Walt Disney is placing a US$1 billion (S$1.29 billion) investment in OpenAI while granting the company access to its extensive library of characters from Disney, Pixar, Marvel, and Star Wars for use in OpenAI’s Sora AI video generator.

The three-year partnership, announced on 11 December 2025, will allow users to create short-form videos using iconic figures such as Mickey Mouse, Cinderella, Mufasa, Black Panther, Iron Man, Darth Vader, and Yoda, with select fan-created content available for streaming on Disney+.

How Disney And OpenAI Plan To Use AI Characters

Under the licensing agreement, Sora and ChatGPT Images will generate content from a defined set of characters, costumes, props, vehicles, and iconic environments.

The deal specifically excludes talent likenesses or voices.

OpenAI confirmed that Sora-generated videos will begin rolling out in early 2026, providing fans with tools to generate, view, and share AI-driven videos while Disney retains control over what appears on its platforms.

Disney will also become a major customer of OpenAI, deploying its APIs across the company to develop new products, enhance Disney+ experiences, and integrate ChatGPT internally for employees.

A selection of user-created videos will be curated for Disney+, tapping into the growing appeal of short-form content.

Disney Emphasises Responsible Use Of AI

Both companies have agreed to strict safeguards to prevent illegal or harmful content and ensure respect for content owners’ rights.

Disney CEO Bob Iger said,

“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 CEO Sam Altman added,

“Disney is the global gold standard for storytelling, and we’re excited to partner to allow Sora and ChatGPT Images to expand the way people create and experience great content.”

Union Concerns Over Artist Compensation

Hollywood unions have reacted cautiously to the deal.

Danny Lin, president of the Animation Guild, expressed concern that animators—the creators behind these characters—should be fairly compensated, noting,

“we’re certainly the reason they exist and the reason that they have such earning potential.”

The Writers Guild of America raised questions about how much of its members’ labour would be used in user-generated videos, warning that the partnership “appears to sanction its theft of our work and cedes the value of what we create to a tech company that has built its business off our backs.”

SAG-AFTRA, representing actors and entertainment workers, said Disney and OpenAI had offered assurances that the deal would ensure ethical and responsible use of AI, including protections for image, likeness, voice, and intellectual property rights.

Analyst Ross Benes noted, however, that union influence may be limited, suggesting,

“they will unlikely be able to stem the momentum of AI-produced media.”

A Deal Years In The Making

Discussions between Bob Iger and Sam Altman reportedly began years ago, with Disney testing early versions of OpenAI’s Sora platform.

The companies explored how generative AI could complement Disney’s characters and stories while remaining within clear licensing and ethical boundaries.

Iger had hinted at AI integration during an investor call in November, stating that AI tools would allow Disney+ users to create and engage with short-form content more personally.

Disney Expands Its IP Strategy

This deal positions Disney as the first major studio to license intellectual property for generative AI at scale and represents one of OpenAI’s largest entertainment-related commercial partnerships.

The licensing arrangement spans over 200 characters across Disney, Pixar, Marvel, and Lucasfilm properties, with Sora and ChatGPT Images transforming user prompts into videos and images within seconds.

Beyond licensing, Disney will receive warrants to purchase additional OpenAI equity, alongside its US$1 billion investment, while OpenAI will continue to implement controls to prevent misuse of Disney’s IP.

The partnership focuses on short-form engagement rather than full-length content production, emphasising controlled access and defined use cases rather than open-ended content creation.

How AI Could Change Fan Engagement On Disney+

A curated selection of fan-generated videos will be available on Disney+, offering subscribers interactive ways to connect with their favourite characters.

The partnership also signals potential shifts in how other major studios might approach licensing and AI-powered content in the coming years, balancing innovation with creator rights and safety standards.

The Disney-OpenAI deal comes amid a broader wave of legal actions in Hollywood, with Disney recently sending a cease-and-desist letter to Google and filing lawsuits against AI image generator Midjourney for using studio characters without permission, highlighting the high stakes in managing intellectual property in the AI era.