Disney Sues Google Over AI, Invests $1B in OpenAI for Sora Videos

Disney accused Google of AI copyright violations while investing $1B in OpenAI. The deal lets OpenAI's Sora use over 200 Disney characters for AI videos, with curated shorts to stream on Disney+.

Disney has taken legal action against Google, alleging that its AI systems used Disney's copyrighted characters without permission to train and generate outputs, and demanded Google halt such use and implement safeguards. At the same time, Disney announced a landmark $1 billion equity investment in OpenAI and a three-year exclusive licensing agreement, allowing OpenAI's Sora video generator and ChatGPT Images to use over 200 Disney, Pixar, Marvel, and Star Wars characters for AI-generated short videos. The deal excludes talent likenesses and voices, focusing on animated and illustrated characters, props, and environments. Curated fan-made AI shorts will be available on Disney+, and Disney will use OpenAI's APIs and ChatGPT internally to develop new products and services. The partnership is exclusive for one year, after which Disney can license its characters to other AI companies. Both companies emphasized responsible AI use and protection of creator rights. Disney's stock rose following the announcement, and Sora-generated content is expected to launch in early 2026.