OpenAI and Disney reach ‘landmark agreement’ to license characters on Sora

Disney characters are coming to OpenAI’s Sora video generation app — this time, with permission. OpenAI and Disney just announced a “landmark agreement” that will see some Sora content appear on Disney+.

The deal is part of an overall $1 billion equity investment in OpenAI by Disney. The licensing agreement will last for three years to start. Disney will have the opportunity to increase its equity investment in OpenAI in the future.

In addition to the licensing agreement and equity investment, Disney will gain access to OpenAI APIs “to build new products, tools, and experiences, including for Disney+,” according to OpenAI. Disney will also deploy ChatGPT to its employees as part of the deal.

OpenAI released Sora for iPhone at the end of September. Initially, there were very few restrictions around what kind of intellectual property users were allowed to generate. OpenAI slowly increased limits around using licensed characters without permission after the initial launch.

Now OpenAI and Disney are touting the new “landmark agreement” as “a significant step in setting meaningful standards for responsible AI in entertainment.”

Under the license, fans will be able to watch curated selections of Sora-generated videos on Disney+, and OpenAI and Disney will collaborate to utilize OpenAI’s models to power new experiences for Disney + subscribers, furthering innovative and creative ways to connect with Disney’s stories and characters. Sora and ChatGPT Images are expected to start generating fan-inspired videos with Disney’s multi-brand licensed characters in early 2026.

Among the characters fans will be able to use in their creations are Mickey Mouse, Minnie Mouse, Lilo, Stitch, Ariel, Belle, Beast, Cinderella, Baymax, Simba, Mufasa, as well as characters from the worlds of Encanto, Frozen, Inside Out, Moana, Monsters Inc., Toy Story, Up, Zootopia, and many more; plus iconic animated or illustrated versions of Marvel and Lucasfilm characters like Black Panther, Captain America, Deadpool, Groot, Iron Man, Loki, Thor, Thanos, Darth Vader, Han Solo, Luke Skywalker, Leia, the Mandalorian, Stormtroopers, Yoda and more.

You can read the full announcement here. Sora is available for free on the App Store.

9to5Mac’s Take

It’s impossible to read about responsible AI in entertainment without recalling how the app launched with almost no limits on character usage.

With that aside, this model does provide a framework for IP holders to work with AI companies going forward. The surprise is that Disney is paying OpenAI to use its characters, not OpenAI paying Disney for licensing.

Video generation AI is not unlike text generation AI. Train on everything without permission, deploy everything without permission, then claw it back and strike a deal.

Meanwhile, Disney hits Google with a cease-and-desist notice over AI training on the same day that OpenAI announced this Disney deal.

But it’s no secret that we shouldn’t look to these firms for moral guidance and consistency. It’s all business.

Another concern is seeing Disney characters doing things in AI videos that they wouldn’t do on-screen. That train already left the station with Disney’s Fortnite partnership, though, which similarly saw Disney take a $1.5 billion equity investment in Epic Games while licensing IP.

Separately, Sora-generated content on Disney+ doesn’t sound like quality subscription content. Instead, it serves to make Disney look like it’s not threatened by AI video content by embracing it.

The real value unlock for Disney will be using Sora technology in actual production for actual releases. Investors will love the efficiency, and creative professionals will hopefully be able to leverage it to increase quality output and not just outsource themselves out of work.

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