A Deal Between OpenAI and Disney

For better, or for worse?

Remember slumping down into your couch and watching Home Alone on Christmas? Well, this should be a key memory for everyone who owns a Disney+ subscription—okay,  maybe not everyone, but a lot of people.

Speaking of Disney, they recently made a billion-dollar investment in OpenAI. This investment is an agreement between OpenAI and Disney, which could lead anywhere, good or bad. 

The Walt Disney Company agreed to a three-year licensing agreement with OpenAI on Thursday, December 11, 2025. More specifically, Disney now has a partnership and agreement with Sora, an AI-powered text-to-video model developed and owned by OpenAI( if you didn’t already know ). This agreement between the two companies is also the first time Sora gained a major licensing partner.

As part of this agreement, the Walt Disney Company will be able to purchase additional equity, or investments. Furthermore, this agreement will allow Sora to generate videos that are able to be viewed and shared. These videos take from a set of characters from Disney, Pixar, Marvel, and Star Wars. In addition, this agreement means that Disney will make a selection of these short-form videos able to be streamed on Disney+.

This could definitely be an opportunity for AI to grow bigger and prove whatever capabilities it may have. For me, I wouldn’t want AI to grow, mainly because I don’t want to fall for some fake news that some world changing event is coming in the near future, then realize its fake right after overworking my last brain cell on what I should do. 

Alternatively, Disney stock may fall, and so might the popularity of the company. In my opinion, entertainment and AI really don't go together. Having to watch an AI generated movie or video doesn’t seem all that pleasing.

Alongside the licensing agreement, OpenAI states, “Disney will become a major customer of OpenAI, using its APIs to build new products, tools, and experiences, including for Disney+, and deploying ChatGPT for its employees.” In short, this basically says that Disney will be able to use tools of OpenAI however they want, possibly leading Disney to use AI as a foundation or building block for the company and its products.

Disney and OpenAI share a commitment to responsibly use AI, protecting the safety of users. OpenAI claims, “Together, the companies will advance human-centered AI that respects the creative industries and expands what is possible for storytelling.” However, this could always go wrong. For example, Disney’s partnership with Sony, which at first seemed to have a great outcome planned ahead, but the idea was eventually salvaged, and the collaboration was ended.

Furthermore, according to the Walt Disney Company, “Sora and ChatGPT Images are expected to start generating fan-inspired videos with Disney’s multi-brand licensed characters in early 2026.” With these changes, there are sure to be some effects due to it, positive, negative, or just meh. 

For example, if Disney becomes reliant on AI. If that happens, Disney will likely be just an old, cherished, but now useless, relic of the past, and so will most Disney movies. Not a very good change if you ask me. On the other hand, parts of Disney movies might actually be improved, with AI just a part of the sidelines, making videos and making small changes. Still kinda meh though. Honestly, if AI isn’t some miracle worker, I don’t see many good outcomes from it.

If you think this deal is questionable, you’re not alone. Even WIRED, a well-known news source, points out, “None of this makes much sense—unless Disney was fighting a battle it couldn’t win.” Additionally, WIRED gives a possible explanation, saying, “with access to OpenAI’s tools, it can try to ensure it’s not left behind by an AI-generated entertainment revolution, as unlikely as that may seem today.” 

So, with these changes and effects coming in the near future, what do you feel about this new collaboration between Disney and OpenAI? Are we going to lose access to key movies such as Star Wars? Let’s just hope Netflix doesn’t make similar decisions.

Works Cited

“The Walt Disney Company and OpenAI reach landmark agreement to bring beloved characters from across Disney’s brands to Sora.” The Walt Disney Company, https://thewaltdisneycompany.com/disney-openai-sora-agreement/ 

“The Walt Disney Company and OpenAI reach landmark agreement to bring beloved characters from across Disney’s brands to Sora.” OpenAI, https://openai.com/index/disney-sora-agreement/

Barrett, Brian. “The Disney-OpenAI Deal Redefines the AI Copyright War.” WIRED, https://www.wired.com/story/disney-and-openais-deal-is-a-major-turning-point/