As part of the agreement, Disney will make a $1 billion equity investment in OpenAI.
Disney will become a major customer of OpenAI and use its API to build AI tools
Photo Credit: OpenAI
OpenAI and The Walt Disney Company have reached a three-year licensing and investment agreement that will allow users to create short, artificial intelligence (AI)-generated videos featuring more than 200 Disney characters on OpenAI's generative video platform, Sora. Under the agreement, Disney will also make a $1 billion (roughly Rs. 8,300 crore) equity investment in the AI giant and receive warrants to purchase additional shares. Notably, in November, OpenAI received a written letter from Japan's Content Overseas Distribution Association (CODA), which represents Studio Ghibli and others, over copyrighted character usage in Sora.
In separate posts, both The Walt Disney Company and OpenAI announced reaching an agreement. While the agreement covers several aspects, the key element is that the AI giant now has the rights to use a wide selection of characters and visual assets from Disney's portfolio across Disney animation, Marvel, Pixar, and Star Wars, for Sora's AI videos and ChatGPT's AI images.
This means users of Sora or ChatGPT will be able to type prompts and receive short videos or images featuring characters such as Mickey Mouse, Ariel and Iron Man, along with their associated environments, props and costumes.
While short videos and images will use Disney's characters, the agreement does not include actor likenesses or original voice recordings. In other words, users can generate animated content featuring characters like Darth Vader or Cinderella, but they will not be able to automatically recreate the voices or appearances of the actors who played them.
The licensing side of the agreement runs for three years. During that period, OpenAI will begin offering Disney-character content on its platforms. Disney also plans to make a selection of fan-generated videos available for streaming on Disney+, the company's subscription video service, giving users another space to showcase their creative content.
Some of the characters users can now generate images and videos of include, Mickey Mouse, Minnie Mouse, Ariel, Cinderella, Baymax, Simba, as well as characters from Frozen, Inside Out, Toy Story, and more. Additionally, iconic Marvel and Star Wars characters, such as Black Panther, Captain America, Deadpool, Darth Vader, Han Solo, Iron Man, Luke Skywalker, Leia, Stormtroopers, Spiderman, and Yoda, can also be generated using OpenAI's AI tools.
In addition to the licensing arrangement, Disney will become a major customer of OpenAI's products and services. As a result, the entertainment giant will use the AI firm's application programming interfaces (APIs) to build new products and experiences, including features for Disney+ and internal workplace tools powered by ChatGPT.
“The rapid advancement of artificial intelligence marks an important moment for our industry, and 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,” said Robert A. Iger, CEO, The Walt Disney Company.
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