OpenAI has struck an equity-only licensing deal with the Walt Disney Company, giving the AI firm rights to use select Disney characters without any upfront cash payment.
As part of the agreement, OpenAI will issue stock warrants to Disney, enabling the entertainment company to acquire additional shares in OpenAI on top of its previously announced $1 billion equity investment.
The deal allows OpenAI to use Disney’s intellectual property without paying upfront, while giving Disney a chance to profit from OpenAI’s future valuation growth if Sora achieves commercial success, according to Bloomberg, citing sources familiar with the matter.
Announced last week, the partnership gives OpenAI’s Sora platform access to a library of over 200 Disney characters, including Mickey Mouse, Cinderella, Ariel, and Simba. As part of the deal, Disney is also taking a $1 billion stake in OpenAI, which is valued at roughly $500 billion, marking one of the largest equity investments by a major studio in an AI developer to date.
The agreement reflects a strategic shift in how entertainment companies engage with AI firms.
Instead of focusing on immediate licensing revenue, Disney is aligning its interests with OpenAI’s long-term growth, effectively exchanging short-term cash for potential gains tied to the success of Sora and OpenAI’s wider product ecosystem.
For OpenAI, the deal strengthens its foothold in the rapidly evolving AI video market, where competition from companies like Runway AI and Alphabet’s Google is intensifying.
Gaining access to Disney’s globally recognized characters could help Sora stand out in a crowded field and speed adoption among creators, studios, and brands.
The partnership also deepens OpenAI’s connections to Hollywood. In recent months, the company has engaged with major studios, including Comcast’s Universal Pictures and Warner Bros. Discovery, exploring the creative and commercial potential of generative video tools.
Bringing Disney on board as both a strategic partner and customer marks a significant milestone in those efforts.
