Disney announced Thursday it would make a $1 billion equity investment in OpenAI as part of a new three-year licensing agreement with the AI company. As part of the deal, Disney said it will also receive warrants to purchase additional equity, becoming a “major” customer of OpenAI.

Disney is investing $1 billion in OpenAI and becoming the first studio to license its characters to Sora — giving fans a way to create AI-generated videos starring Mickey Mouse, Marvel heroes and more.

Disney says that alongside the agreement, it will "become a major customer of OpenAI," as it will use its APIs to build new products, tools, and experiences, including for Disney+.

Disney is taking a $1 billion equity stake in OpenAI, while also striking a deal that would allow its famous characters be used on Sora, the AI company’s video generation platform.

The Sora Video Platform is now at the center of a major new partnership between Disney and OpenAI. This deal […]

Meanwhile, The House of Mouse is suing Midjourney.

Users will be able to make short-form content using characters from Disney, Marvel, Pixar and Star Wars.