M.G. Siegler • #openai • Dec 11, 2025

OpenAI Strikes Back

OpenAI's deal with Disney deals a blow to Google...

Gemini this. Gemini that. Hey Google, say hello to my little friend, Darth Vader.

In quite the one-two punch, two pieces of news have just hit in quick succession. The first was that Disney and OpenAI have an agreement in place for the AI startup to use selected IP from the storied company in products like Sora. Then, just minutes later came the second: Disney was sending a cease and desist letter to Google, ordering the Big Tech giant to stop infringing on their IP with their own AI systems.

I mean, wow, that's one way to change the conversation.

Again, that conversation has been largely about how Google, with their recent updates to Gemini, had come roaring back to match and perhaps surpass the long-time AI leader, OpenAI. Perhaps not in terms of users versus ChatGPT – at least not yet. But some clever product moves and the ability to leverage the Google properties with billions of users had many wondering if they weren't just back in the game after their slow start, but perhaps now winning it.

As it turns out, Sam Altman had a lightsaber up his sleeve:

The Walt Disney Company and OpenAI have reached an agreement for Disney to become the first major content licensing partner on Sora, OpenAI’s short-form generative AI video platform, bringing these leaders in creativity and innovation together to unlock new possibilities in imaginative storytelling.

As part of this new, three-year licensing agreement, Sora will be able to generate short, user-prompted social videos that can be viewed and shared by fans, drawing from a set of more than 200 animated, masked and creature characters from Disney, Marvel, Pixar and Star Wars, including costumes, props, vehicles, and iconic environments. In addition, ChatGPT Images will be able to turn a few words by the user into fully generated images in seconds, drawing from the same intellectual property. The agreement does not include any talent likenesses or voices.

And it's not just Sora and ChatGPT that benefit from this partnership, it's OpenAI itself, which gained a key core "major" customer in the form of Disney:

Alongside the licensing agreement, 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.

Only after all of that, four paragraphs deep, do we get the other key element of the deal:

As part of the agreement, Disney will make a $1 billion equity investment in OpenAI, and receive warrants to purchase additional equity.

So that's not just a one-two punch, it's more like a one-two-three-four punch combo. With this last bit being key because Disney is obviously now going to be directly incentivized to favor any work and partnerships with OpenAI.¹ Everyone else? Please stop using our IP immediately – or else.

And, of course, it's arguably the most important IP on the planet. Certainly when it comes to image and video generation. Yes, it's limited to the "more than 200 animated, masked and creature characters" – which is clearly meant to protect actual actors and actresses – but it's just about as impressive of an IP list as you'll find:

Among the characters fans will be able to use in their creations are Mickey Mouse, Minnie Mouse, Lilo, Stitch, Ariel, Belle, Beast, Cinderella, Baymax, Simba, Mufasa, as well as characters from the worlds of Encanto, Frozen, Inside Out, Moana, Monsters Inc., Toy Story, Up, Zootopia, and many more; plus iconic animated or illustrated versions of Marvel and Lucasfilm characters like Black Panther, Captain America, Deadpool, Groot, Iron Man, Loki, Thor, Thanos, Darth Vader, Han Solo, Luke Skywalker, Leia, the Mandalorian, Stormtroopers, Yoda and more.

Sorry Vibes, no Yoda for you.

This also continues a trend and narrative around Disney being forward-thinking when it comes to new technology. They have long been famously first to partner with Apple on new initiatives – undoubtedly thanks to Steve Jobs being the largest shareholder and board member at Disney post the Pixar deal, and later, Bob Iger sitting on Apple's board – but also with their large investment in Epic Games a couple years back. With Iger now on the verge of retirement – for real this time, we think – this could be his swan song deal for all we know: seeing Disney ushered into the AI era.

That will undoubtedly have Hollywood up in arms yet again. We're in the midst of everyone still losing it over the Netflix/Warner Bros deal, and in walks Disney to cut a deal with whom many in the industry see as the actual devil in OpenAI (as the leader in AI). What a dichotomy!

So is Disney doing the right thing here? Time obviously will tell, but this is also fairly limited in scope – both time-bound and IP-bound – clearly on purpose. And working with a company to ensure better oversight of IP infractions seems like a better move than simply suing. Sorry, Midjourney, Character.ai, and now Google!

A couple months ago, I wondered if we were on the verge of a (legal) IP tsunami on Sora, with celebrities rushing in to stake their claim just as others filed their claims on IP infringement. Well, this may actually be the moment. We'll see if others follow Disney's lead – and if OpenAI is going to be um, open to giving them equity deals as well.

Undoubtedly, this leads Google, Meta, and everyone else to rush out to try to get their own, unique IP deals in place. Someone get David Zaslav on the phone, quick! It's not like Warner Bros is busy with anything else at the moment...

For now, this feels like another Jedi mind trick maneuver by OpenAI. Hopefully it's one that doesn't end with, "I am altering the deal. Pray I don't alter it any further."

One more thing: Soras on Disney+! This sounds silly, of course. For now...