"On Thursday, Disney and OpenAI announced a deal that might have seemed unthinkable not so long ago. Starting next year, OpenAI will be able to use Disney characters like Mickey Mouse, Ariel, and Yoda in its Sora video-generation model. Disney will take a $1 billion stake in OpenAI, and its employees will get access to the firm's APIs and ChatGPT. None of this makes much sense-unless Disney was fighting a battle it couldn't win."
""I think that AI companies and copyright holders are beginning to understand and become reconciled to the fact that neither side is going to score an absolute victory," says Matthew Sag, a professor of law and artificial intelligence at Emory University. While many of these cases are still working their way through the courts, so far it seems like model inputs-the training data that these models learn from-are covered by fair use. But this deal is about"
Disney will permit OpenAI to use its iconic characters in a video-generation model while taking a $1 billion stake and granting employees API and ChatGPT access. Disney has pursued aggressive litigation over AI-generated uses of its intellectual property, suing Midjourney and sending cease-and-desist notices to Google. The entertainment industry appears to be pursuing licensing agreements where possible and litigation where licensing is not feasible. Courts so far suggest training-data inputs may fall under fair use, while model outputs raise stronger intellectual-property claims, making output licensing a practical resolution to complex risks.
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