Disney, Bob Iger and OpenAI
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Disney is investing $1 billion in OpenAI and is giving the go-ahead for its iconic characters like Mickey Mouse to be used in the AI short-form video app Sora. The two companies announced a three-year deal that would bring more than 200 characters to Sora with a period of exclusivity for part of the duration of the deal.
Disney CEO Bob Iger told CNBC that the partnership with OpenAI values creativity and keeps creators safe from replacement while giving fans new opportunities for creativity.
Disney faces an engagement problem as kids gravitate to YouTube. It's looking to OpenAI to help boost engagement.
The CEO suggested that Disney would prefer Paramount to prevail in the battle for Warner Bros. Discovery, citing Netflix's streaming dominance and the perilous state of movie theaters.
To be clear: Disney is not handing the keys to its IP over to OpenAI indefinitely. In an interview with CNBC ’s “Squawk on the Street” Thursday, Disney CEO Bob Iger clarified that the three-year licensing deal comes with only about a year of exclusivity for OpenAI. After that, Disney can shop its IP to other AI companies.
Are AI companies friend or foe?
The inevitable part is that Disney CEO Bob Iger hinted several weeks ago something like this was coming, and most smart money had it involving OpenAI; the kind of social virality Iger suggested fit squarely with what OpenAI has been good at with the likes of Sora and ChatGPT.