Earlier this year, generative AI prompts on social platforms produced videos that used Disney characters and even impersonated civil‑rights figures, prompting studios to push back. Disney issued a cease‑and‑desist to Character.ai alleging unauthorized use of its copyrighted characters. Rather than simply continuing that fight, Disney reached a new arrangement: on December 11, 2025, the company announced a deal to license more than 200 characters to OpenAI’s short‑form video platform, Sora.
As part of a three‑year agreement, Disney will invest $1 billion in OpenAI and license characters and IP to be used on Sora. According to OpenAI, Sora will be able to generate short, user‑prompted videos that fans can view and share — and select pieces of that content may be curated for streaming on Disney+ or other Disney channels. OpenAI’s statement outlines the scope of the partnership and planned integrations.
The licensed roster is extensive, spanning classic Disney and Pixar favorites as well as stylized animated versions of Marvel and Lucasfilm icons. Examples cited include Mickey and Minnie Mouse; Lilo & Stitch; Ariel, Belle and Cinderella; Baymax; Simba and Mufasa; characters from Encanto, Frozen, Inside Out, Moana, Monsters, Inc., Toy Story, Up, and Zootopia; plus illustrated or animated takes on Marvel and Star Wars figures such as Black Panther, Captain America, Deadpool, Groot, Iron Man, Loki, Thor, Thanos, Darth Vader, Han Solo, Luke Skywalker, Leia, the Mandalorian, Stormtroopers, Yoda and others.
Both companies emphasize safeguards and a commitment to responsible AI use that protects creators and users. That concern is not abstract: OpenAI recently had to restrict Sora from producing videos depicting Martin Luther King Jr., underscoring the complexities of moderating generated content. OpenAI’s prior moderation actions highlight those challenges.
Beyond licensing characters for Sora, Disney plans to leverage OpenAI’s technology to develop new products, creative tools, and interactive experiences that extend its franchises into generative formats.
Disney CEO Bob Iger framed the collaboration as a measured embrace of technological change — positioning generative AI as a means to expand storytelling and give fans more personal ways to interact with beloved characters, while stressing the need to protect creators’ rights.
This agreement represents a major inflection point for Hollywood’s relationship with AI. While some filmmakers — including high‑profile directors — have publicly rejected AI as a creative tool for major productions, studios and rights holders increasingly see AI as a way to scale content, monetize fan engagement, and explore new product lines. That combination of creative possibility and commercial incentive raises questions about artistic labor, quality control, and how platforms will balance fan participation with responsible oversight.
Source: Polygon
