Disney Strikes $1bn Licensing Deal With OpenAI for AI-Generated Characters
Disney has agreed to a $1bn (£740m) partnership with OpenAI that will allow users to create images and videos featuring characters from the entertainment giant’s vast catalogue using tools such as ChatGPT and the AI video generator Sora.
The agreement marks the first time a major Hollywood studio has formally licensed its characters to a leading artificial intelligence company, a move that could reshape how studios approach digital storytelling and intellectual property in the AI era.
Under the deal, fans will be able to generate content featuring more than 200 characters drawn from Disney, Pixar, Marvel and Star Wars franchises. The approved list includes characters from films such as Moana, Encanto and Zootopia, alongside well-known figures like Luke Skywalker, Deadpool, and Disney’s flagship characters Mickey and Minnie Mouse.
Disney said the arrangement does not include actor likenesses or voices, leaving open questions about how characters will sound in AI-generated content.
Announcing the partnership, Disney chief executive Bob Iger said the rapid evolution of artificial intelligence presents a pivotal moment for the entertainment industry. He said the collaboration with OpenAI would allow Disney to expand its storytelling reach while doing so “thoughtfully and responsibly”.
According to OpenAI, the new features are expected to become available to users in early 2026.
The announcement comes at a sensitive time for the AI industry, as OpenAI faces scrutiny over how its technology is used and as concerns grow in Hollywood about the effect of AI on creative jobs and copyright protections. It also coincides with reports that Disney has issued a cease-and-desist notice to Google, alleging large-scale copyright infringement. Google has been contacted for comment.
Legal experts say the deal highlights a growing trend toward formal licensing agreements between rights holders and AI developers. Joel Smith, an intellectual property partner at Simmons & Simmons, said major content owners are moving quickly to secure control over how their work is used in AI systems.
Meanwhile, performers’ union Equity warned that the agreement underlines the need for stronger safeguards for actors. The union is currently consulting members on whether to resist digital scanning practices in order to secure better AI protections. Equity’s head of TV and film, Cathy Sweet, said creatives’ contributions must not be exploited without proper consent or compensation.
OpenAI’s Sora platform has attracted widespread attention for its realistic video outputs, but it has also drawn criticism over misuse. The company previously restricted the tool after AI-generated videos depicting deceased public figures in offensive ways sparked backlash.
OpenAI has acknowledged the need for stronger controls as it expands access to its technology, while studios and unions continue to debate how AI should be integrated into the future of entertainment.
