Disney invests $1B in OpenAI in deal to bring characters like Mickey Mouse to Sora AI video tool

Disney is investing $1 billion in OpenAI and will bring characters such as Mickey Mouse, Cinderella and Luke Skywalker to the AI company's Sora video generation tool, in a licensing deal that the two companies announced on Thursday.

At the same time, Disney went after Google, demanding the tech company stop exploiting its copyrighted characters to train its AI systems.

The OpenAI agreement makes the Walt Disney Co. the first major content licensing partner for Sora, which uses generative artificial intelligence to create short videos.

Under the three-year licensing deal, fans will be able to use Sora to generate and share videos based on more than 200 Disney, Marvel, Pixar and Star Wars characters.

AI video generators like Sora have wowed with their ability to quickly create realistic clips based merely on text prompts. But a flood of such videos on social media, including clips depicting celebrities and deceased public figures, has raised worries about ''AI slop'' crowding out human-created work alongside concerns about misinformation, deepfakes and copyright.

Disney and OpenAI said they are committed to responsible use of AI that protects the safety of users and the rights of creators.

''This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences,'' OpenAI CEO Sam Altman said.

As part of the deal, some user-generated Sora videos will be made available on the Disney+ streaming service.

Disney will also become a ''major customer'' of OpenAI and use its technology to build new products, tools, and services. It will also roll out ChatGPT for employees.

Also Thursday, Disney sent Google a cease and desist letter, demanding that the tech company stop using Disney content without permission to feed and train its AI models, including its Veo video generator and Imagen and Nano Banana image generators.

It has previously issued similar cease and desist letters to Meta and Character.AI and has filed litigation with NBCUniversal and Warner Bros. Discovery against AI image generator Midjourney and AI company Minimax.

''Well, we have been aggressive at protecting our IP, and we have gone after other companies that have not honored our IP, not respected our IP, not valued it. And this is another example of us doing just that," Iger said in an interview on CNBC's ''Squawk on the Street. "We have been in conversation with Google, basically expressing our concerns about this. And, ultimately, because we didn't really make any progress, the conversations didn't bear fruit, we felt we had no choice but to send them a cease-and-desist.''

Google has also been ''intentionally amplifying'' the problem by making the infringing content available across its many channels including YouTube, Disney said.

Disney said Google hasn't taken any measures to mitigate the problem even though it has been raising the concerns for months. ''Google's mass infringement of Disney's copyrighted works must stop,'' the letter said.