Disney invests $1 billion to bind OpenAI, 200 IPs + Sora, it's time to take off, right?

Six months ago, if someone had said that Disney would embrace OpenAI, it would probably have been considered a joke.

This company is world-renowned for its strong stance on copyright protection. Since 1990, Disney has been lobbying to extend copyright protection periods. In 1998, it was involved in promoting the passage of the Sonny Bono Copyright Term Extension Act, which extended the protection period for corporate works from 75 years to 95 years, humorously dubbed the "Mickey Mouse Protection Act."

The erosion of copyright by AI companies has made Disney particularly vigilant. Just a few months ago, it sent a cease-and-desist letter to Character.AI, demanding the removal of Disney character chatbots; it also filed a lawsuit against Midjourney, accusing it of generating Disney character images without authorization.

But on December 11, the narrative changed dramatically.

Disney and OpenAI suddenly announced a deep strategic partnership, not only granting OpenAI's short video platform Sora access to core IPs, including Mickey Mouse, but also investing $1 billion in equity and obtaining warrants. Furthermore, Disney itself will become a major customer of OpenAI, using OpenAI's API to build products, tools, and experiences, as well as deploying ChatGPT for its employees.

This marks the first time a top global entertainment IP giant has granted large-scale formal authorization to a mainstream generative video AI platform, which is certainly significant. However, from the announcements of both parties, the statement that "Disney will become Sora's first major content licensing partner" is particularly noteworthy. This indicates that Disney is the more proactive party in advancing the collaboration, highlighting the importance of AI in the entertainment and content industry.

Moreover, this partnership carries more subtle signals. At the same time as collaborating with OpenAI, news emerged that Disney sent a cease-and-desist letter to Google, adding a layer of choosing sides to their cooperation. It is evident that in the future, not only will AI giants confront each other, but there will also be more alliances and collaborations.

In summary, this partnership is quite intriguing, and the story is not simple.

Sora, which couldn't retain users, is injected with soul

This collaboration goes far beyond content licensing, extending to multiple levels of "licensing + investment + technology application."

On the financial level, Disney's $1 billion equity investment and warrants represent not just money, but also a public endorsement of OpenAI's technology and business model. On the technology application level, Disney will become a major customer of OpenAI, using its API to build new products and improve the Disney+ experience with its models.

Of course, the most important aspect is still copyright licensing.

According to the three-year licensing agreement, OpenAI's Sora platform has obtained the rights to use over 200 characters from Disney, Marvel, Pixar, and Star Wars. This list is nothing short of a dream, including Mickey, Minnie, Stitch, Simba, as well as Black Panther, Captain America, Iron Man, and Master Yoda, among others Users can generate short videos featuring these characters through text prompts with Sora. ChatGPT Images can also transform several words into complete images in seconds. Furthermore, fan-selected creations generated by Sora can be broadcast on Disney+.

For OpenAI, especially its Sora platform, this is a timely boost.

We previously discussed that while Sora as a model is powerful, it does not qualify as a consumer product, with app retention rates being dismal. In fact, the Sora App was quite popular at launch. Due to a bolder copyright mechanism that allowed all copyrighted characters to be used by default, early users could create enjoyable content based on well-known IPs like SpongeBob SquarePants, Pikachu, and Mario.

However, this led to widespread copyright disputes, with several major Hollywood studios taking legal action against OpenAI's competitors. Subsequently, to mitigate copyright risks, OpenAI began strict reviews, which directly stifled the platform's vitality. Thus, the Sora App became a shell showcasing technology, and this collaboration truly injected it with soul.

In comparison, on one side is an ordinary AI video generator, while on the other is a tool that allows you to create stories featuring Mickey Mouse and Iron Man, clearly the latter has several magnitudes more appeal. After all, IPs are natural emotional connection bonds. What users want is not an abstract video generation capability, but the right to tell stories with their favorite characters.

More critically, it is a breakthrough in content legality.

Sora faced collective resistance from Hollywood due to copyright issues and was labeled as an "infringement tool." Now, with the endorsement of Disney, a giant in IP, Sora has overnight transformed from an industry enemy into a legitimate creative partner. This change brings not only legal security but also psychological recognition from users. When everyone realizes that they are not using a pirated tool but an officially authorized creative platform, they will naturally have a better impression of Sora.

Consequently, Sora's user stickiness will undergo a qualitative change. When users can legally create content with beloved IPs and even have the opportunity to have their works featured on Disney+, Sora transforms from a disposable tool into a creative community worth continuous investment.

All of the above factors combine to open a sustainable development path for OpenAI. If OpenAI previously had not figured out the direction of the Sora product and platform, then with Disney's endorsement, future content licensing commercialization will have a reference model.

Of course, with Disney's backing, OpenAI will also gain a competitive edge in the current AI video arena.

From Opposing AI to Embracing AI, Disney Suddenly Turns Around

For Disney, the breakthrough significance of this collaboration is even more apparent. However, the turning point also had its signs.

In the November conference call for Disney's fourth fiscal quarter, Disney CEO Bob Iger expressed excitement about using AI to make the Disney+ app more attractive, including enabling users to create short video content He also stated that AI will provide Disney+ users with a more immersive experience.

From Disney's historical behavior, this investment and licensing collaboration has made Disney's AI direction clearer.

As a giant with top global film and entertainment IPs, its brand and content are the company's most important strategic assets. Over the years, Disney has taken a very tough stance on copyright protection, particularly launching legal actions against generative AI companies that used its works without permission, demonstrating its caution and vigilance towards AI.

Now, Disney has presented a strategic shift from opposing AI to collaborating with AI, bringing it numerous benefits.

Firstly, by licensing Sora, Disney transforms fans from traditional content viewers into creative participants, enhancing interaction with fans; subsequently, showcasing fan works on the Disney+ platform will further strengthen emotional connections with fans.

At the same time, Disney+ primarily relies on traditional long-form video content such as movies and series. The introduction of AI-generated curated short videos will help meet fragmented viewing demands. AI video highlights can serve as a distinctive feature to attract new users and can also become a differentiated competitive advantage for Disney+.

Additionally, there are longer-term gains. For traditional content giants, AI is both a threat and an opportunity. If they do not actively collaborate, their IPs still risk being used illegally; if they completely reject AI, they may fall behind in technological transformation. Now, by deeply binding with OpenAI, there is a greater opportunity for OpenAI to secure a definitive position in the AI wave.

Interestingly, on the same day that Disney announced its collaboration with OpenAI, news spread that Disney sent a cease-and-desist letter to Google. According to Variety, Disney accused Google of "massive" copyright infringement, using AI models and services to commercially distribute unauthorized images and videos.

This adds drama to Disney's collaboration with OpenAI. It seems that the AI conflict is expanding, and Disney has already chosen its side.

What Does Mickey Mouse Embracing AI Mean?

The movements of leading companies signal industry trends. From a broader perspective, this collaboration will have far-reaching impacts on both the tech and entertainment sectors.

On the tech side, this collaboration is built on formal licensing and equity cooperation, providing a clear path for AI platforms to acquire high-quality IPs. Traditional generative AI platforms often face copyright disputes due to the use of unauthorized IPs, and this agreement promotes a shift in the industry from infringement-based training to a new model of "licensed content pool + rule setting."

More importantly, IP value is directly incorporated into the AI service generation chain, driving the AI industry from being technology-driven to "content + technology joint-driven." The model of "paid licensing + investment + joint application development" between the two parties is likely to become a template for AI platforms collaborating with other entertainment companies The impact on the entertainment industry is more intuitive. When fans can create their own short videos based on Disney IP, and selected works can even be featured on Disney+, the boundaries between media and users begin to blur, and the importance of AI videos to the entire streaming platform will also significantly increase.

At the same time, cooperation provides practical samples for the long-standing ethical issues surrounding AI in the industry. For example, while opening up IP licensing, the agreement clearly sets boundaries, not involving the use of any artist's likeness or voice content.

Returning to the discussion on attitudes towards AI, in fact, Disney's collaboration with OpenAI is essentially about getting on the AI bandwagon earlier while ensuring its core copyright interests. It is dissatisfied with AI taking advantage of its IP but will not be conservative about the technological revolution itself.

Since its establishment, Disney has regarded technological innovation as part of driving content and experience. Early on, the introduction of digital 3D animation improved the expressiveness and efficiency of animation production, and in the past two years, it has supported AI companies like ElevenLabs and AudioShake through accelerator programs.

Clearly, this entertainment content industry giant at the forefront of the industry is well aware of the potential and power of AI. Its collaboration with OpenAI can be summarized in one statement: the integration of AI and the entertainment content industry is no longer a question of whether, but how.

On the surface, it seems that Disney has shifted from extending copyright protection to early licensing, from controlling everything to actively opening up, seemingly overturning tradition. However, upon closer examination, this is a tactical adjustment, not a betrayal of principles. The core assets are still firmly in its hands. In the AI era, controlling these assets—“who can use” and “how to use”—is more valuable than simply prohibiting their use.

In summary, the rules of the game in the entertainment industry are quietly changing due to AI. Rather than passively playing their cards, players should actively upgrade.

It's not just Disney that needs to change.

Silicon Star Pro, original title: "Disney Invests $1 Billion to Bind OpenAI, 200 IPs + Sora, Is It Time to Take Off?"

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