Disney to Invest in OpenAI:
Walt Disney (DIS, Financials) said it will invest $1 billion in OpenAI and license characters from franchises including Star Wars, Pixar and Marvel for use in the companys Sora artificial intelligence video generator, a deal that could reshape film and television production.
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Under the three-year agreement, Sora and ChatGPT Images will begin generating videos using licensed Disney characters such as Mickey Mouse and Cinderella starting early next year. The arrangement excludes talent likenesses and voices and includes safeguards to prevent inappropriate use of the characters.
Disney will also leverage OpenAI's capabilities to make film production more efficient and provide all of its employees access to ChatGPT. Disney+ will include a selection of user-produced videos shot using the technology, which will add to the platform's short-form content. Disney will also get warrants that let them acquire more shares in OpenAI.Hollywood unions were worried about how the alliance might affect artists' pay and intellectual property rights. Disney and OpenAI promised SAG-AFTRA that they would use the technology in an ethical way, but authors and animators wanted more information.The contract shows that generative AI is becoming more popular in the entertainment industry as studios try to find a balance between new ideas and worries about workers and copyright.