Landmark Deal

Disney + OpenAI Sora: Generate Disney Character Videos with AI (2026 Guide)

February 4, 2026 9 min read

Disney just became the first major entertainment company to license its characters to an AI video generator. Starting early 2026, you'll be able to use OpenAI's Sora to generate 30-second videos featuring over 200 Disney, Marvel, Pixar, and Star Wars characters. Here's what this historic deal means for founders building in AI and entertainment.

$1B
Disney investment in OpenAI
200+
Licensed characters
3yr
Deal duration

What's in the Deal?

The Disney-OpenAI partnership is the most significant licensing deal in AI history. Here's what it includes:

Deal Terms at a Glance

$1B
Disney equity investment + warrants for more
200+
Characters from Disney, Marvel, Pixar, Star Wars

What's Licensed

What's NOT Licensed

Why This Matters

This is the first time a major IP holder has licensed characters for generative AI. It sets a precedent for how entertainment IP can be monetized in the AI era. Every other media company is watching closely.

How It Will Work

On Sora

Users will be able to generate short videos featuring licensed Disney characters through text prompts. Think: "Darth Vader teaching yoga on a beach" or "Buzz Lightyear making coffee in a modern kitchen."

Key details:

On ChatGPT Images

The deal also extends to ChatGPT's image generation, allowing users to create still images featuring Disney IP with text prompts.

On Disney+

Disney plans to integrate this into Disney+ in two ways:

  1. Curated gallery - Best fan-created Sora videos showcased on Disney+
  2. In-app creation - Disney+ subscribers may eventually create videos directly in the app
"Our hope is to use the Sora tools to enable subscribers of Disney+ to create short-form videos on our platform, through Sora." - Bob Iger, Disney CEO

The Business Relationship

This isn't just a licensing deal. Disney and OpenAI are becoming deeply intertwined:

Aspect Details
Equity Investment $1B investment + warrants for additional equity
Enterprise Customer Disney becomes major OpenAI API customer
Employee Access ChatGPT deployed for Disney employees
Product Development Joint development of Disney+ AI experiences
Deal Duration 3-year initial term

Why Disney Did This

Bob Iger's reasoning reveals a calculated bet:

1. Control the Narrative

People are already making unauthorized Disney AI content. By partnering, Disney gets guardrails and monetization rather than chasing takedowns.

2. Engagement Play

Fan-generated content creates engagement without Disney producing it. Every Sora video is free marketing.

3. Data & Learning

Disney gets insights into what fans create, revealing demand signals for future content.

4. AI Capability Building

The enterprise relationship gives Disney access to OpenAI's models for internal tools and future products.

"This will help the creative process" - Bob Iger on how the deal extends beyond consumer features

What This Means for Founders

IP Licensing is Opening

If Disney is licensing to AI, others will follow. Expect Warner Bros, Universal, and more to explore similar deals. New business models emerging.

UGC 2.0

User-generated AI content is becoming mainstream. Platforms enabling character-based creation have a clear path forward now.

Enterprise AI Deals

Major companies are becoming AI customers at scale. B2B2C opportunities in entertainment/media are growing.

Safety as Feature

The "robust controls" requirement shows kid-safety and brand-safety are table stakes for entertainment AI.

Opportunities for AI Startups

1. Brand Safety Tools

Disney's deal requires controls to prevent Mickey Mouse doing inappropriate things. Startups building content moderation and brand safety for generative AI have a massive new market.

2. Rights Management

Tracking what IP is used where, by whom, and ensuring proper licensing/royalty flows. The complexity is immense.

3. Platform Infrastructure

If Disney+ is integrating Sora creation, other streamers will want similar capabilities. Platform-as-a-service for entertainment AI creation.

4. Vertical AI Video Apps

Sora is general-purpose. There's room for specialized apps that focus on specific use cases (kids content, fan films, etc.) with appropriate licensing.

The Bigger Picture

This deal signals a fundamental shift in how intellectual property works in the AI era:

Prediction

Within 18 months, every major streaming service will have some form of AI-generated content creation feature. Disney just fired the starting gun.

Risks and Concerns

For Disney

For Users

Timeline

Bottom Line

The Disney-OpenAI deal isn't just about making fun videos of Darth Vader cooking dinner. It's a watershed moment that legitimizes AI content generation for entertainment IP.

For founders, the implications are significant:

Disney betting $1B on OpenAI says they believe this is the future. Whether you're building in AI, entertainment, or both, this deal sets the template for what's coming.

Stay Updated on AI + Entertainment

Get weekly insights on AI tools and deals shaping the creator economy. No fluff - just actionable intelligence.

Welcome! You'll get our next issue.
Something went wrong. Please try again.