Disney Reportedly Explores AI Deal with Companies Like OpenAI Amid Industry Shift

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Disney is in talks with companies like OpenAI, looking at ways to work together in the fast-growing world of artificial intelligence, according to Bloomberg. This comes as studios try to figure out how to use AI to their advantage without losing control over their most valuable content , characters, stories, and everything that makes Hollywood what it is.

While tech giants like Amazon, Meta, Apple, and Google are pouring billions into AI, Hollywood is moving more carefully. Studios want to cut costs and boost production with AI, but they’re also worried about protecting their copyrights and not upsetting major unions. It’s a delicate balance, and everyone is watching closely.

Disney has already taken a big step. Earlier this month, the company sued Midjourney, a startup that lets people create images using text prompts. Disney said Midjourney used its characters, like Darth Vader and Deadpool, to train its system without permission. The company sent takedown requests that were ignored, which led to the lawsuit. Midjourney didn’t comment on the case.

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Disney’s top lawyer, Horacio Gutierrez, is leading the charge. “This is our first case, but it likely won’t be the last,” he told Bloomberg. He said Disney wants to make sure it keeps the right to control how its characters and stories are used, especially by AI. “We cannot afford to repeat the mistakes of the past,” he added.

In the past, Hollywood reacted slowly to the rise of the internet. Studios tried to sue file-sharing sites and streaming platforms, while new companies like Netflix and YouTube changed how people watched movies and shows. Now, studios say they’ve learned that fighting new tech doesn’t always work. They want to be part of the AI movement — but on their own terms.

Some media companies are already working with AI firms. The Atlantic and Vox Media licensed their work to OpenAI. Music labels are teaming up with YouTube. Lionsgate even made a deal with the AI company Runway to train a model on its content. Disney licensed Darth Vader’s voice for an AI chatbot in Fortnite.

Lionsgate’s vice chairman Michael Burns said during an AI film event that the goal is simple: “You’re making higher quality content for lower prices.”

Still, many in Hollywood are nervous. The big question is whether AI companies can legally use copyrighted material to train their systems without asking for permission. That depends on how courts interpret “fair use,” a rule that allows some use of copyrighted content without a license. So far, the results in court have been mixed.

Entertainment leaders are worried lawmakers might favor big tech. Former Trump officials like Michael Kratsios have said America needs to support its tech companies to stay ahead of China in the AI race. “We want the world to be running on the American AI stack,” Kratsios said at a Bloomberg event.

The rules aren’t clear yet, and it could take years for courts and Congress to sort it all out. But studios like Disney aren’t waiting. They’re taking action now, through lawsuits, deals, and tough talks with AI firms.

As Gutierrez said, it’s all about making sure the people who created the characters and stories keep control over them in the AI era.

In my opinion, this is a crucial moment for Hollywood. It’s clear AI will play a big role in the future of entertainment, but the industry can’t afford to be caught off guard like it was with streaming. Studios need to be smart, cautious, and creative. What do you think about Disney’s move? Should more studios take a stand? Let us know in the comments below.

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