Disney Bets $1 Billion on an AI Future

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Disney just inked a massive deal with OpenAI, giving the tech company permission to use Disney characters in generative AI, and Disney is backing it up with a $1 billion equity investment.

Depending on who you ask, this is either the start of a groundbreaking new era for tech and entertainment, or the beginning of a future “what were they thinking?” documentary. The takes are flying, but honestly, time is the only real judge here.

In a joint statement, the companies said: “The Walt Disney Company and OpenAI have reached an agreement for Disney to become the first major content licensing partner on Sora, OpenAI’s short-form generative AI video platform… unlocking new possibilities in imaginative storytelling.”

What that actually means: people will be able to generate short videos in Sora using over 200 Disney characters. That includes everything from Marvel and Pixar to Star Wars and the classic animated icons. We are talking nearly a century of some of the world’s most recognizable characters. Which specific ones will show up is still a bit murky.

Here is the wildest twist: a handful of these fan-made AI videos will actually appear on Disney+. Imagine prompting an AI to whip up a short scene, and the next thing you know it is sitting next to The Mandalorian on the Disney+ homepage. This could be a stroke of genius, or it could turn the service into an AI junk drawer. We are about to find out.

I also cannot shake the feeling that Disney is doing this partly to stay ahead of the chaos. If AI is going to use their characters anyway, maybe the safest move is to keep it in-house and on a short leash. As the saying goes, keep your friends close and your enemies closer, although in this case keeping your “enemy” close costs about a billion dollars.