OpenAI has entered an equity-only licensing agreement with the Walt Disney Company, allowing the artificial intelligence firm to use some of Disney’s most iconic characters without an upfront cash payment.
Under the deal, OpenAI will grant Disney stock warrants, allowing the entertainment giant to purchase additional shares in the artificial intelligence company beyond its previously announced $1 billion equity investment.
The arrangement enables OpenAI to access Disney’s intellectual property without an immediate cash payment, while giving Disney the opportunity to benefit from OpenAI’s future valuation growth if Sora gains commercial traction, Bloomberg which spoke with people familiar with the matter, reported.
How the deal will take shape
The partnership, announced last week, allows OpenAI’s Sora platform to draw from a library of more than 200 animated and creature characters owned by Disney, including Mickey Mouse, Cinderella, Ariel and Simba. Disney also agreed to take a $1 billion stake in OpenAI at a reported valuation of approximately $500 billion, making it one of the most significant equity investments by a major studio in an AI model developer to date.
The deal signals a strategic shift in how entertainment companies are engaging with artificial intelligence firms. Rather than prioritising immediate licensing revenue, Disney appears to be aligning its financial interests with OpenAI’s long-term growth prospects, effectively trading near-term cash flows for potential upside linked to the success of Sora and OpenAI’s broader product ecosystem.
For OpenAI, the agreement strengthens its position in the fast-evolving AI video market, where competition from players such as Runway AI and Alphabet’s Google continues to intensify. Access to Disney’s globally recognised characters could help differentiate Sora in a crowded landscape and accelerate adoption among creators, studios and brands.
What this means
The partnership also deepens OpenAI’s ties to Hollywood. The company has held discussions in recent months with major studio owners, including Comcast’s Universal Pictures and Warner Bros. Discovery, on the creative and commercial potential of generative video tools. Securing Disney as both a strategic partner and customer represents a major milestone in those efforts.
As part of the agreement, Disney will deploy OpenAI’s software to develop new products and consumer experiences, positioning the media conglomerate as one of OpenAI’s most high-profile enterprise customers. While details of these initiatives have not been disclosed, they are expected to span digital content creation, interactive storytelling and immersive entertainment formats.
Overall, the OpenAI–Disney deal shows the convergence between artificial intelligence and the global entertainment industry. By structuring the transaction around equity rather than cash, both companies are signalling confidence in the long-term commercial potential of generative AI, even as questions around intellectual property, creative control and regulation continue to shape the sector’s evolution.
