Disney is ushering in a new wave of creative magic, teaming up with OpenAI to bring its legendary characters and worlds into a fresh era of AI-powered storytelling.

The Walt Disney Company (NYSE:DIS) announced Thursday that it has entered a multiyear partnership with OpenAI that could redefine how fans engage with its iconic franchises by integrating generative AI into Disney's experiences.

Disney- OpenAI's Sora: What's New

A three-year licensing deal grants OpenAI's Sora platform access to more than 200 characters, settings, vehicles, and props from Disney, Pixar, Marvel, and Star Wars to generate short, user-prompted videos.

Fans can create and share clips, and curated selections will appear on Disney+.

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Investment And Enterprise Integration

Disney will invest $1 billion in OpenAI and receive warrants that could increase its stake. The company will also adopt OpenAI's APIs to enhance Disney+ features and deploy ChatGPT internally to support operations and creative development.

Sora will produce short videos from prompts, while ChatGPT Images will generate stills using licensed IP.

The agreement excludes performers' real faces and voices, and both companies emphasize strong protections for creators, strict safety controls, and prevention of harmful or illegal content.

Disney's Storytelling Legacy

CEO Robert A. Iger called generative AI the next major evolution in entertainment, stating that the partnership enables Disney to deepen fan engagement while upholding creator rights.

OpenAI CEO Sam Altman praised Disney as the benchmark for global storytelling and highlighted the collaboration as a model for responsible innovation.

Interactive fan experiences are expected to debut on Disney+ in early 2026, pending corporate approvals. In separate entertainment news, Disney recently renewed Jimmy Kimmel under a new multiyear deal as part of its broader content strategy.

Commitment to Responsible AI

Disney said in its press release that OpenAI will continue developing age-appropriate policies, safety tools, and content filters. Both companies underscore protecting IP rights and individual likeness while unlocking new creative possibilities for fans and professionals.

OpenAI Landscape

The partnership comes as OpenAI navigates a shifting competitive and financial environment.

Nvidia (NASDAQ:NVDA) recently revealed that its widely discussed $100 billion direct-compute deal with OpenAI is still only at the letter of intent stage, with no definitive agreement finalized.

OpenAI continues to rely on cloud partners like Microsoft (NASDAQ:MSFT) and Oracle (NYSE:ORCL) in the meantime, even as industry analysts warn the company faces intensifying pressure from rivals such as Alphabet's (NASDAQ:GOOGL)(NASDAQ:GOOG) Google Gemini 3 and ongoing financial strains.

DIS Price Action: Walt Disney shares were up 1.81% at $110.79 at the time of publication on Thursday, according to Benzinga Pro data.

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