preCharge News BUSINESS — The Walt Disney Company has struck a $1 billion deal to license its content to Chat-GPT maker OpenAI, a first-of-its-kind deal that could help the artificial intelligence firm gain a significant edge over its competitors as the pressure to secure content to feed AI-powered applications mounts.

Sora Gains Access to 200+ Disney Characters

Under the three-year agreement, OpenAI’s content creation application Sora will be able to tap more than 200 characters from the Disney universe, enabling its users to create videos with those characters. Some of the fan-created videos will become available to stream on Disney+.

Disney Makes $1 Billion Equity Investment in OpenAI

Disney will also make a $1 billion equity investment in OpenAI, and it will receive warrants to purchase additional equity in the firm.

A Turning Point for AI and Hollywood Partnerships

Over the past two years, Hollywood players have mounted legal challenges against AI firms that have used their content without permission, forcing OpenAI and its competitors to seek deals with major studios. Those efforts have largely lagged as entertainment industry players remain skeptical of the emerging technology.

Disney Deal Marks Potential Shift in Industry Attitudes

But, Disney’s deal with OpenAI could represent a major turning point in AI firms’ efforts to ally with Hollywood and mine its content.

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Associated Press, CNBC News, Fox News, and preCharge News contributed to this report.