Disney just made a huge bet on generative AI. The entertainment giant signed a three-year licensing deal with OpenAI to use Sora, the AI video platform, to create short social videos featuring over 200 characters from Disney, Marvel, Pixar, and Star Wars. Think fan-made clips with Mickey or Darth Vader, generated from text prompts. Beyond that, ChatGPT will also generate still images from this beloved IP. The deal doesn’t use real actor likenesses or voices. Disney is also paying up: it’s investing $1 billion in OpenAI and will become a major customer, using OpenAI’s tech to build new tools for Disney+ and for employee use. Both companies are hyping a commitment to ‘responsible AI’ for safety and creator rights. This isn’t about fully-made movies yet, but it’s a massive leap into AI-generated content. Why it matters: This is the first major partnership between a Hollywood giant and a leading AI company, setting a precedent for how studios will license their iconic IP for generative AI, and potentially reshaping fan engagement and content creation.