Disney CEO Bob Iger Reveals OpenAI Deal Is Entertainment Giant’s ’A Way In’ to AI

Bob Iger just put Disney on the AI map. The CEO's confirmation of a partnership with OpenAI isn't just a tech deal—it's a strategic masterstroke for the House of Mouse.

The New Frontier of Storytelling

Forget just streaming. The real battleground is artificial intelligence. Iger's move secures Disney a front-row seat to the tools that will redefine content creation, from animation and VFX to personalized experiences and maybe even sentient sidekicks. This isn't about replacing artists; it's about arming them with a new kind of magic.

Why OpenAI? Why Now?

Every media conglomerate is scrambling for an AI strategy. Iger bypassed the internal R&D slog and went straight to the source, cutting a deal with the industry's leading lab. It's a classic power play: leverage the best tech without building it yourself. Wall Street analysts, usually busy calculating Mickey's licensing fees, are now forced to price in Disney's newfound AI optionality.

The Bottom Line

This partnership is a direct shot across the bow of every tech and entertainment rival. It signals that Disney intends to lead the next era of entertainment, not just participate in it. For investors, it transforms the narrative from a legacy media stock to a tech-adjacent innovator. Of course, the real test will be whether this 'way in' leads to actual revenue—or just another line item in the 'metaverse and emerging tech' write-off column next earnings call.

Key Takeaways

• Disney and OpenAI on Thursday announced a three-year licensing agreement to bring Disney, Star Wars, and Marvel characters to OpenAI's image and video generation tools.
• Disney will also invest $1 billion in OpenAI as part of the deal.

Darth Vader, Captain America, and Mickey Mouse are coming to ChatGPT.

The Walt Disney Company (DIS) and OpenAI announced a three-year licensing deal Thursday to make Disney characters available through the ChatGPT maker's image and video generation tools, with Disney also investing $1 billion in OpenAI.

Starting early next year, users of the ChatGPT image generator and OpenAI's Sora short-form video platform will be able to use over 200 Disney, Star Wars, Pixar, and Marvel characters in their content. Disney said it also plans to make some of the Sora-generated user videos available for Disney+ users to watch on its streaming service.

Disney CEO Bob Iger told CNBC in a televised interview following the announcement that the agreement is seen giving Disney “a way in” to AI and could help expand its reach with younger consumers.

Disney wants to "participate in the rather dramatic growth rather than just watching it happen and essentially being disrupted by it," Iger said.

Why This Matters to Investors

Many publishers, studios, and content creators have responded to the rapid rise of AI chatbots by partnering with their makers as Disney is doing with OpenAI, or suing over allegations of illegal use of copyrighted material like Disney has previously done with AI image generation platform Midjourney.

Iger said that the OpenAI deal does not include the voices of the characters, or the name, image, and likeness of the original actor, which he said means it "does not in any way represent a threat to the creators" or actors who played the characters. He also suggested the deal is exclusive for only part of the three-year timeline, potentially allowing Disney to make similar licensing deals with other AI companies in the future.

OpenAI CEO Sam Altman said in the interview alongside Iger that OpenAI plans to work with Disney to establish guardrails preventing videos with inappropriate content from being generated involving the Disney characters.

The deal comes not long after Disney sent a cease and desist letter to Alphabet's (GOOGL) Google, alleging that the maker of the Gemini chatbot and Nano Banana Pro image generator used copyrighted material to train its models, according to CNBC. Disney and Google did not respond to an Investopedia request for comment on the letter in time for publication.

Iger told CNBC that Disney will wait to see how Google responds before deciding if the company needs to escalate legal action.

Disney shares were up about 1% in recent trading, leaving them less than 1% below where they started the year.

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