Disney is reshaping Hollywood content with a $1 billion investment in OpenAI.

 The partnership will last for three years

Disney is reshaping Hollywood content with a $1 billion investment in OpenAI.

Walt Disney will invest $1 billion in OpenAI and allow the startup to use characters from the Star Wars, Pixar, and Marvel universes in its AI-powered video maker, Sora, in a deal that could reshape Hollywood's content industry.

The three-year partnership, announced on Thursday, is a significant step in Hollywood's adoption of generative AI, overcoming concerns about AI's impact on creative jobs and intellectual property rights.

As part of the licensing agreement, Sora and ChatGBTImages will begin creating videos using licensed Disney characters such as Mickey Mouse, Cinderella, and Mufasa, starting early next year, according to Reuters.

Disney CEO Bob Iger said, "Through this collaboration with OpenAI, we will thoughtfully and responsibly expand our storytelling capabilities through generative AI, while respecting and protecting creators and their work."

The deal also includes restrictions to prevent the depiction of characters in inappropriate situations. A source familiar with the matter said Disney also plans to use OpenAI's tools internally to support film production, as it seeks to increase efficiency.

This partnership comes after criticism from Creative Artists, Hollywood's leading talent agency, which accused OpenAI of exposing artists to "significant risks" with its Sora app and questioned whether creators would be compensated for their work.