Walt Disney has announced a $1bn equity investment in OpenAI, enabling the AI start-up’s Sora video generation tool to use its characters.

Users of Sora will be able to generate short, user-prompted social videos that draw on more than 200 Disney, Marvel, Pixar and Star Wars characters as part of a three-year licensing agreement between OpenAI and the entertainment giant.

A selection of the videos made by users will also be available for streaming on the Disney+ platform.

Bob Iger, Disney’s CEO, hailed a deal which paired his firm’s “iconic stories and characters” with OpenAI’s AI technology. It will place “imagination and creativity directly into the hands of Disney fans in ways we’ve never seen before”, he claimed.

But it comes amid intense anxiety in Hollywood over the impact of artificial intelligence on the industry, expression and rights of creators.

Disney will also use OpenAI’s application programming interfaces to build new products and tools, becoming a major customer of the ChatGPT maker. It will also deploy ChatGPT for its employees, the companies said.

“Technological innovation has continually shaped the evolution of entertainment, bringing with it new ways to create and share great stories with the world,” said Iger. “The rapid advancement of artificial intelligence marks an important moment for our industry, and through this collaboration with OpenAI we will thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works.”

Reuters contributed reporting