Get ready to see some creepy AI Disney videos where Iron Man and Elsa from Frozen search for their long-lost father, Darth Vader.
What happened: Walt Disney is investing US$1 billion in OpenAI and will license its library of characters across the Marvel, Star Wars, Pixar, and Disney franchises to use in its AI video platform, Sora. This marks the largest investment a Hollywood studio has ever made in an AI company.
The three-year licensing deal covers over 200 characters but doesn’t include talent likeness. For instance, Sora can generate videos of Luke Skywalker but can’t use Mark Hamill’s voice.
Disney will even put a curated selection of Sora-generated videos on Disney+ (we’re not really sure who’s asking for that).
Why it matters: Disney opening up its tightly guarded IP (remember the Disney Vault?) is a major endorsement of AI-generated content. With one of Hollywood’s biggest players now on board, it likely won’t be long until other studios hop on the AI-video train.
So far, Warner Bros., Universal, and Comcast have reportedly held off on signing deals of this nature, fearing blowback from industry unions that have widely condemned AI.
Yes, but: Given the lengths Disney has gone to protect its family-friendly image, this deal is a huge risk. AI video models have been known to generate vulgar content, and while Disney has prohibited videos that include drugs, alcohol, and sex, there’s no guarantee OpenAI will be able to stop users from making clips of Donald Duck smoking a joint and getting busy.—LA