philip lelyveld The world of entertainment technology

Disney to Invest $1 Billion in OpenAI in Major Deal That Boosts Sora in Hollywood

Users of the AI video creation platform will now be able to create clips of 200 characters from Marvel, Pixar and 'Star Wars' franchises. ...

The three-year deal signals that studios may look to embrace, rather than fight, AI startups that already allow users to infringe on their intellectual property. By this thinking, at least Hollywood companies are able to monetize their IP with lucrative licensing deals rather than see their businesses entirely disrupted with nothing to show for it. ...

For now, shortform video creation is the deal of the day and Disney+ will now allow “fan-inspired Sora short form videos” on its platform, a product add that studio chief Bob Iger hinted at on a Nov. 13 earnings call. In examples, Disney included images of a fan with a lightsaber in Star Warsgarb, another fan surfing on a big wave with Stitch at the edge of the surfboard and another fan at the starting line of a race next to a Pixar vehicle from Cars. The licensed character product launches on Sora and ChatGPT images will debut in early 2026. ...

The move immediately may start to legitimize Sora around the industry, given Disney’s brand-cautious approach. ...

From a dealmaking perspective, the move from Iger reminds of a $1.5 billion equity investment into Epic Games last February to bring Disney characters into Fortnite in a multiyear effort to court audiences where they’re at. At the time Iger described the epic deal as “an important step when you look at the demographic trends and look at where Gen Alpha and Gen Z and even millennials are spending their time in media.” ...

See the full story here: https://www.hollywoodreporter.com/business/business-news/disney-to-invest-1-billion-in-openai-in-major-deal-that-boosts-sora-1236447942/