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Disney partners with OpenAI in $1bn deal for AI-generated content
A new agreement allowing OpenAI's ChatGPT and Sora to use Disney characters has raised alarms among entertainment industry professionals, who fear the impact on human creativity.
Union voices concerns over AI licensing
SAG-AFTRA, a union representing 170,000 media professionals globally, expressed serious unease about the $1 billion (£740 million) deal, which marks the first major studio licensing its intellectual property to OpenAI.
Executive director Duncan Crabtree-Ireland said the union was informed that the agreement excludes human performers' likenesses or voices but warned that the move still threatens creative jobs.
"Nobody wants to see human creativity given away to AI models."
Duncan Crabtree-Ireland, SAG-AFTRA
What the deal includes
The partnership will allow users to generate and share images and videos featuring over 200 Disney-owned characters, including those from Pixar, Marvel, and Star Wars franchises. Eligible characters range from Mickey Mouse to Encanto and Moana figures, as well as Luke Skywalker and Deadpool.
However, Disney clarified that the agreement does not cover the voices or likenesses of real actors. Fans will gain access to the tools in early 2026.
Industry reactions and legal tensions
Disney CEO Bob Iger described the collaboration as a responsible way to expand storytelling, but unions argue it underscores the urgent need for AI safeguards.
Equity, another entertainment union, is currently polling performers on whether they would refuse digital scans on set to push for stronger protections. Cathy Sweet, Equity's head of TV and Film, called the deal a reminder that "creatives' rights must be protected."
The announcement comes as Disney reportedly sent Google a cease-and-desist letter this week, accusing the tech giant of large-scale copyright infringement. Google has not yet responded to requests for comment.
AI's growing role and ethical challenges
OpenAI's Sora, which generates hyper-realistic videos, has faced criticism for enabling offensive deepfakes, including disrespectful depictions of historical figures like Martin Luther King Jr. and John F. Kennedy. The company temporarily restricted the tool's ability to generate images of King after public backlash.
Zelda Williams, daughter of the late Robin Williams, has also urged people to stop sharing AI-generated videos of her father. Meanwhile, Warner Music Group recently announced plans to launch an AI music venture, a year after suing the same technology firm in a landmark copyright case.
Broader implications
Joel Smith, an intellectual property lawyer, noted that the Disney-OpenAI deal reflects a trend of rights holders and AI developers rushing to secure licensing agreements for training data. The move highlights the tension between innovation and protecting creative labor.
