Disney has entered into a landmark agreement with OpenAI, investing US$1 billion (approximately AUD$1.5 billion) to become the first major content-licensing partner of Sora, OpenAI’s new short-form video generator. Set to begin in March 2026, this deal will allow users to create “fan-inspired” clips featuring characters from Disney, Pixar, Marvel, and Star Wars, utilizing a library of over 200 beloved figures.
The partnership signifies a notable shift in how Disney approaches its intellectual property. Users will soon be able to generate short videos based on their prompts, which will also be accessible on Disney+. Additionally, Disney plans to integrate OpenAI’s technology into its internal systems, enhancing its production and creative processes.
Disney CEO Bob Iger has framed this collaboration as a natural evolution in the relationship between technology and storytelling. He described the rapid advancement of AI as “an important moment for our industry,” emphasizing that the partnership aims to extend storytelling capabilities while ensuring respect for creators and their works. On the other side, OpenAI’s CEO Sam Altman has touted the agreement as a model of responsible collaboration between tech companies and creative leaders.
Despite the optimistic framing from both organizations, concerns are growing among creative unions. Representatives from SAG-AFTRA have voiced significant apprehension about the implications of the deal, stating that “nobody wants to see human creativity given away to AI models.” Although Disney and OpenAI have assured SAG-AFTRA that the agreement excludes the use of performers’ images, likenesses, and voices, the union intends to monitor the implementation closely to ensure compliance with existing contracts and laws.
The Writers Guild of America (WGA) has taken a more direct stance, asserting that the deal may facilitate the exploitation of creative work. The guild has pointed out that Disney’s substantial investment in OpenAI coincides with the licensing of “hundreds” of characters to Sora. The WGA’s statement underscores a growing anxiety about AI’s role in the creative process, claiming that companies like OpenAI have “stolen vast libraries of works” to train their models. They argue that this deal effectively legitimizes the appropriation of creative content developed by writers and other artists.
Disney’s history with AI has not been without controversies. The company has previously issued legal threats against AI firms utilizing its characters without permission. In one notable instance, Disney accused Google of “mass” copyright infringement, highlighting the industry’s ongoing battle over intellectual property rights in the digital landscape.
The ramifications of this deal extend beyond corporate interests, raising critical questions about the future of creative employment. For many working in film and television, the concern is not limited to the generation of isolated clips. If studios can easily license large portions of their libraries to AI companies and employ these tools internally, it could reshape how films and television shows are developed and produced. Unions like the Media, Entertainment & Arts Alliance (MEAA) in Australia have already warned that unchecked AI integration could jeopardize creative jobs and diminish pay and working conditions.
As the industry navigates this new terrain, the implications for everyday workers remain uncertain. The current agreement does not immediately replace human creators, but it represents a pivotal moment in the ongoing dialogue about technology’s role in creative industries. The partnership allows Disney to explore innovative formats while providing OpenAI with valuable data and a prestigious collaborator, leaving many in the industry wondering how their contributions will be safeguarded in this evolving landscape.
Whether this partnership leads to a new era of creativity or becomes a source of contention will depend on how the contract is implemented and the broader legal framework surrounding AI and intellectual property. The responses from unions and creative professionals will be crucial in shaping the trajectory of this partnership and determining the balance between technological advancement and the protection of creative rights.
