Disney’s OpenAI deal is exclusive for just one year — then it’s open season

Disney’s three-year licensing partnership with OpenAI includes just one of exclusivity, Disney CEO Bob Iger told CNBC. The company signed the partnership with OpenAI last week that will bring its iconic characters to the AI firm’s Sora video generator. Once that exclusive year is up, Disney is free to sign similar deals with other AI companies.

The deal gives OpenAI a high-profile content partner, allowing users to draw on more than 200 characters from Disney, Marvel, Pixar, and Star Wars to create content on Sora. For now, it’s the only AI platform that’s legally permitted to do so.

For Disney, the deal offers a way to test the waters with generative AI and its intellectual property, letting the company assess how its partnership with OpenAI goes before pursuing additional agreements.

“No human generation has ever stood in the way of technological advance, and we don’t intend to try,” Iger told CNBC. “We’ve always felt that if it’s going to happen, including disruption of our current business models, then we should get on board.”

Tellingly, the same day that Disney announced its deal with OpenAI, the company sent a cease-and-desist letter to Google, alleging that the tech giant has infringed on its copyrights. Google didn’t confirm or deny Disney’s allegations but did say it will “engage” with the company.