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Media

Disney about turn as with $1bn OpenAI investment and partnership

Walt Disney Co's (NYSE:DIS, XETRA:WDP) tie-up with OpenAI marks a striking about-turn for a company that has spent the past year warning tech firms against using its characters without permission.

The entertainment group is investing $1 billion in OpenAI and has agreed a three-year deal allowing Sora users to generate short videos featuring more than 200 characters from Disney, Marvel, Pixar and Star Wars.

The arrangement covers fictional creations only and excludes real performers’ likenesses.

Bob Iger, Disney’s chief executive, said the partnership would put new creative tools “directly into the hands” of fans.

For OpenAI, it represents its most prominent step into Hollywood after Sora triggered concerns over copyright, misuse of characters and the creation of offensive or misleading material.

Past controversies have included racist depictions of historical figures and unauthorised use of well-known animated characters.

Disney has previously issued cease-and-desist letters to companies it accused of infringing its rights, underscoring the scale of its shift towards controlled collaboration.

OpenAI’s chief executive, Sam Altman, said the agreement showed how technology firms and creative industries could work together responsibly. Disney will also adopt OpenAI’s software internally, and selected Sora-generated videos will appear on Disney+.

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