Disney to invest $1 billion in OpenAI, license characters for Sora AI tool

Walt Disney (DIS.N), opens new tab, is investing $1 billion in OpenAI and will let the startup use characters from Star Wars, Pixar and Marvel franchises in its Sora AI video and image generator, a crucial deal that could reshape how Hollywood makes content.

The partnership announced on Thursday is a pivotal step in Hollywood’s embrace of generative artificial intelligence, despite the industry’s concerns over the impact of AI on creative jobs and intellectual property rights.

As part of the agreement, Sora and ChatGPT Images are expected to start…