Disney’s OpenAI deal is exclusive for just one year — then it’s open season

Disney’s three-year licensing partnership with OpenAI includes just one year of exclusivity, according to Disney CEO Bob Iger. The company signed the partnership last week, which will bring its iconic characters to OpenAI’s Sora video generator. Once that exclusive year is up, Disney is free to sign similar deals with other AI companies.

The deal gives OpenAI a high-profile content partner. It allows users to draw on more than 200 characters from Disney, Marvel, Pixar, and Star Wars to create content on Sora. For now, it is the only AI platform legally permitted to do so.

For Disney, the deal offers a way to test the waters with generative AI and its intellectual property. This lets the company assess how its partnership with OpenAI goes before pursuing additional agreements.

“No human generation has ever stood in the way of technological advance, and we don’t intend to try,” Iger said. “We’ve always felt that if it’s going to happen, including disruption of our current business models, then we should get on board.”

Notably, the same day Disney announced its deal with OpenAI, the company sent a cease-and-desist letter to Google. It alleged that the tech giant has infringed on its copyrights. Google did not confirm or deny the allegations but said it will engage with Disney.