A recent licensing deal between OpenAI and Disney poses a seismic shift in the entertainment landscape, according to Fortune.
What's happening?
This week, Disney invested $1 billion in OpenAI. Users of OpenAI's video generation service, Sora, will be able to summon characters from Disney's deep vault for their own creations. In turn, Disney will be able to use select user-generated Sora videos on its streaming platform and access Sora's commercial tools in developing new content.
"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," said Disney CEO Bob Iger.
The licensing agreement is set for three years.
Why is this AI agreement important?
Investment analyst Nicholas Grous saw the agreement as a moment that will define pre- and post-artificial-intelligence entertainment eras. He even suggested that AI content trends could guide future publisher releases.
"We didn't know Cinderella walking down Broadway and interacting with these types of characters, whatever it may be, was something that our audience would be interested in," was one way Grous said Disney could interpret the use of its characters in Sora, per Fortune. "We're going to use our studio chops to build this into something that's a bit more luxury than what just an individual can create."
Grous said that these kinds of licensing deals could increase the value of old properties beyond their use in existing content, as they would be building blocks in creating new content.
With the support of popular intellectual properties, AI video creation stands to grow even further in popularity. As it stands, the use of AI has included increases in energy use, which produces atmospheric pollution if generated from coal or gas. Despite its short history, studies are already showing that AI use is increasing harmful carbon pollution.
What's being done about AI video?
Tech giants like Google, Microsoft, and Meta have tried to mitigate the environmental footprint of their AI data centers with investments in low-impact energy sources like nuclear and geothermal. At the same time, researchers are continually working to make models more efficient and consume less power.
The cultural implications of more AI content with beloved characters across the Disney universe are yet to be seen, but Grous is hopeful.
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"People are going to want to go outside and meet or go to the theater," he said, per Fortune. "Like, we're not just going to want to be fed AI slop for 16 hours a day."
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