Disney's AI Deal Limited

Disney's AI Deal Limited

16 December 2025

Disney's recent agreement with OpenAI, involving a $1 billion investment and the licensing of over 200 characters for use on Sora, includes a key exclusivity clause. For the first year of the three-year licensing agreement, Disney is restricted from entering similar partnerships with other AI companies. After this initial period, Disney is free to pursue collaborations with other AI entities.

Under the terms, Sora can generate short videos using Disney, Marvel, Pixar, and Star Wars characters. Disney will also utilise OpenAI's APIs to develop new products and experiences, including those for Disney+, and will provide ChatGPT access to its employees. The deal enables users to create videos featuring Disney characters using Sora prompts, with selected videos potentially appearing on Disney+. This partnership signifies a move towards Hollywood studios embracing AI, with Disney aiming to extend its storytelling reach through generative AI while protecting creators' rights.

The licensing agreement does not include talent likenesses or voices. Disney's CEO, Bob Iger, has stated the deal respects and honours creators, partly due to the licensing aspect. The collaboration reflects a commitment to responsible AI use, safeguarding both user safety and creator rights.

AI generated content may differ from the original.

Published on 15 December 2025
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