Disney is betting big on AI and OpenAI's Sora users will be reaping the benefits (well Disney and OpenAI are winners, too)! The entertainment powerhouse just signed a $1 billion investment and licensing deal with OpenAI, which will give users of Sora's generative AI app access to more than 200 Disney characters (including characters from "Frozen," "Star Wars" and "Lilo and Stitch") to create user-generated social videos. As part of the deal, Disney will use OpenAI's APIs to develop new products, tools and experiences. Disney will also make ChatGPT available to its employees.

The deal comes at a time when mounting tension exists between AI companies and Hollywood as well as its actors. So, one thing the deal does NOT involve: Disney's intellectual property. OpenAI will not be training its models on Disney's IP. The parties insist they are committed to "maintaining robust controls to prevent the generation of illegal or harmful content, to respect the rights of content owners in relation to the outputs of models and to respect the rights of individuals to appropriately control the use of their voice and likeness." However, let's face it, this is challenging to contain once tools get out in the wild.

I have my popcorn and am awaiting the industry's reaction. What do you think of this deal? Is it good for the industry or bad for Hollywood? Drop me a line. You may see your thoughts in an upcoming issue.
-Susan