Disney seals $1 Billion deal with OpenAI to power next-gen AI content; Here's what we know

American multinational media and entertainment conglomerate has thrown in a big surprise to the netizens as they reportedly announced that they have made a $1 billion equity investment in OpenAI and will allow users to make videos and more. But what is the overall deal all about? Let's delve in to know more in detail.

What is the deal between Disney and OpenAI all about?

According to a report by Reuters, Walt Disney Company is investing $1 billion in OpenAI and will let the startup use characters from the Star Wars, Pixar and Marvel franchises in its Sora AI video generator, a crucial deal that could reshape how Hollywood makes content.

Reportedly, the three-year partnership announced that it is a pivotal step in Hollywood's embrace of generative artificial intelligence, side-stepping the industry's concerns over the impact of AI on creative jobs and intellectual property rights.

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Moreover, alongside the licensing agreement, reportedly, Disney will become a major customer of OpenAI, using its APIs to build new products, tools and experiences, including for Disney+, and deploying ChatGPT for its employees.

All about Walt Disney Company

The Walt Disney Company was founded on October 16, 1923, as an animation studio by brothers Walt Disney and Roy Oliver Disney as Disney Brothers Cartoon Studio. Disney operated under the names Walt Disney Studio and Walt Disney Productions before adopting its current name in 1986.

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In 1928,Disney established itself as a leader in the animation industry with the short film Steamboat Willie. Walt Disney Studios includes Walt Disney Pictures, Walt Disney Animation Studios, Pixar, Marvel Studios, Lucasfilm, 20th Century Studios, 20th Century Animation, and Searchlight Pictures.

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Disney's other main business units include divisions operating the ABC television network; cable television networks such as Disney Channel, ESPN, Freeform, FX, and National Geographic; publishing, merchandising, music, and theatre divisions; direct-to-consumer streaming services such as Disney+, ESPN+, Hulu, and Hotstar; and Disney Experiences, which includes several theme parks, resort hotels, and cruise lines around the world.

All about OpenAI

American artificial intelligence company OpenAI is based in San Francisco, California, and it aims to develop safe and beneficial artificial general intelligence (AGI).

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OpenAI is known for the GPT family of large language models, the DALL-E series of text-to-image models, and a text-to-video model named Sora. Its release of ChatGPT in November 2022 has been credited with catalysing widespread interest in generative AI.