One of the cornerstones of artificial intelligence (AI), OpenAI has already raised US$78 billion from heavyweights like Microsoft, Softbank , Nvidia , and Sequoia Capital . Now, these investors will share space on the company's cap table with Mickey Mouse , Donald Duck, and company.
Disney announced on Thursday, December 11, that it will invest $1 billion in OpenAI stock and will receive a subscription bonus to acquire additional shares of the company, owner of ChatGPT.
The investment, which marks the largest deal ever signed by a media group and an AI company, is one component of a broader partnership connecting the entertainment giant's characters with Sora, OpenAI's short-form video creation tool.
As part of the agreement, which includes a three-year licensing contract, Disney becomes the platform's first major partner, enabling it to generate user-created videos for social media using a selection of over 200 characters from Disney, Marvel, Pixar, and Star Wars.
“Technological innovation has continually shaped the evolution of entertainment, bringing with it new ways to create and share great stories with the world,” said Robert Iger , CEO of The Walt Disney Company, in a statement.
The collection included in the agreement features names like Mickey Mouse, Lilo, Stitch, Ariel, Cinderella, and Simba, as well as characters from franchises such as Frozen, Inside Out , Moana, Monsters, Inc., Toy Story, Captain America, Deadpool, and Star Wars .
“Combining Disney’s iconic stories and characters with OpenAI’s innovative technology puts imagination and creativity directly into the hands of Disney fans in a way never seen before, offering them richer and more personal ways to connect with the characters and stories they love,” Iger added.
The partnership also involves ChatGPT Images, a ChatGPT feature through which users can generate images in seconds from text descriptions (prompts) using the same intellectual property. However, the agreement does not cover the use of images or voices of artists.
“Disney is a global leader in storytelling, and we are excited about this partnership that will allow Sora and ChatGPT Images to expand how people create and experience high-quality content,” said Sam Altman , co-founder and CEO of OpenAI.
In addition to licensing, the agreement stipulates that Disney will become a client of OpenAI, using the company's APIs to create products, tools, and experiences, including for Disney+, its streaming service and rival to Netflix.
Under these terms, users will have access to special selections of videos generated by Sora on Disney+. And Disney and OpenAI will work together to develop new experiences for subscribers of the service.
On the other hand, both companies reaffirmed their commitment to the responsible use of artificial intelligence, which includes issues such as user protection and security, as well as the rights of creators.
This statement directly relates to the legal entanglements that OpenAI, as well as other artificial intelligence companies, have faced regarding the use of proprietary data from media groups to train their artificial intelligence models.
Disney shares were trading 1.12% higher on the New York Stock Exchange around 10:15 a.m. (local time) on Thursday, at $110.04. Year-to-date, the stock is down 1.17%. The group is valued at $197.8 billion.
OpenAI, in its latest private funding round held in October, was valued at approximately US$500 billion.
