Entertainment giant Disney has taken a groundbreaking step in the field of artificial intelligence. The company is investing a massive $1 billion in OpenAI, led by Sam Altman, through a partnership. This agreement allows users of OpenAI’s AI video creation platform, Sora, to create short clips using iconic characters from Marvel, Pixar, and Star Wars franchises.
Disney and OpenAI reach agreement
This three-year licensing agreement, announced on December 11, 2025, is a strong signal that Hollywood studios are beginning to embrace AI initiatives that infringe on intellectual property rights (IP), rather than fighting them.
With this approach, Disney is monetizing its IP through lucrative licensing agreements, rather than risking complete disruption of its business and receiving no compensation. However, how this will ultimately affect production and content creation processes in the entertainment industry remains the biggest question.
For now, the focus is on short-format video content. Disney+ is now allowing “fan-inspired Sora short-format videos” on its platform. Disney CEO Bob Iger had already hinted at this merchandise addition during the November 13 earnings call.
The company shared examples, including one fan wielding a lightsaber in a Star Wars costume, another surfing a large wave with Stitch on the edge of a surfboard, and another standing at the starting line of a race in a Pixar vehicle (from the Cars series). Licensed character merchandise is launching via Sora and ChatGPT visuals in early 2026.
Given Disney’s brand sensitivity, this move could immediately boost Sora’s legitimacy across the industry. This is in stark contrast to the harsh backlash Sora faced during its invitation-only launch in October.
At the time, Altman’s merchandise launched with features allowing users to manipulate celebrity likenesses to say or do whatever they wanted, but these features were later withdrawn following negative reactions.
Disney CEO Bob Iger, announcing the agreement, said, “Technological innovation has constantly shaped the evolution of entertainment and brought new ways to create and share great stories to the world.”
Iger stated that the rapid advancements in AI represent a significant moment for the industry and that this collaboration with OpenAI will expand the reach of storytelling “thoughtfully and responsibly through generative AI, respecting and protecting creators and their work.”
OpenAI CEO Sam Altman also hinted at receiving further IP licensing offers for Sora. In his October withdrawal announcement, Altman stated that he would give rights holders “more granular control over character creation” and shared his prediction regarding the deals.
Altman said, “We’re hearing from many rights holders that they’re very excited about this new type of ‘interactive fan fiction’,” and he believes this new type of interaction will add great value to them.
