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

The partnership announced on Thursday is a pivotal step in Hollywood’s embrace of generative artificial intelligence, despite the industry’s concerns over the impact of AI on creative jobs and intellectual property rights.

As part of the agreement, Sora and ChatGPT Images are expected to start generating fan-requested videos using licensed Disney characters in early 2026.

The companies will use OpenAI’s models to build new products, tools and customer experiences, including for Disney+ subscribers.

The partnership comes months after Hollywood’s premier talent agency sharply criticized the same technology Disney is now embracing.

Creative Artists Agency, which represents thousands of actors, directors and music artists, said in October that OpenAI was exposing artists to “significant risk” through Sora, questioning whether the AI company believed creative professionals “deserve to be compensated and credited for the work they create.”

Through the deal with OpenAI, a selection of the videos made by users will be available for streaming on the Disney+ platform. It will also deploy ChatGPT for its employees, the companies said.

The tie-up will also cover image generation on ChatGPT, drawing from the same Disney intellectual property.