Disney has agreed to a landmark $1bn (PS740m) licensing deal with OpenAI, allowing users to create images and videos of famous Disney characters using ChatGPT and the video-generation app Sora. This is the first time a major Hollywood studio has licensed its catalogue to an artificial intelligence company, signaling a fundamental change in how entertainment firms interact with fast-developing technology.
The agreement will cover over 200 Disney characters across its large portfolio, including Pixar, Marvel, and Star Wars, as AI-generated imagery is offered. Beginning in early 2026, users will be able to create and share personalized content featuring characters from Zootopia, Moana, Encanto, Luke Skywalker, Deadpool, Mickey Mouse, and Minnie Mouse. Disney underlined that the collaboration does not allow the likenesses and voices of talents to be used.
Implications of AI and the Creative Industry.
Disney chief executive Bob Iger called the deal a historic moment for the entertainment industry and said the rapid emergence of artificial intelligence needs careful guidance. Although OpenAI’s tools are widely adopted worldwide, their use is still debated in Hollywood, especially regarding the future of creativity. The announcement coincided with reports that Disney sent a cease-and-desist letter to Google, accusing the tech giant of massive copyright infringement. Google has not yet responded publicly to the allegation.
Sora’s hyper-realistic video features have attracted significant interest in the United States, along with criticism after AI-generated deepfakes of deceased personalities appeared. In October, OpenAI restricted the tool from creating images of Martin Luther King Jr. after producing images widely seen as disrespectful. Other AI-generated videos of John F. Kennedy, Queen Elizabeth II, and Stephen Hawking have circulated online, prompting families to demand stronger protections. The daughter of the late comic actor Robin Williams also publicly called for an end to AI-generated videos depicting her father.
OpenAI has recognized the need for increased protection as its systems advance, and ethical and regulatory concerns about AI’s impact on the entertainment industry continue to grow. The agreement highlights an increasing overlap between Silicon Valley and Hollywood, just as artificial intelligence is transforming how creative content is created, how consumers experience it, and how long-term business strategy is made. The studio is experimenting with the boundaries of its intellectual property without infringing on artistic integrity or the law by licensing its character library while maintaining strict boundaries on likeness rights.
For both Disney and OpenAI, the deal marks the start of a new stage in storytelling and technology use, one that will shape cultural and industry discussions long after 2026.
