Amazon in Talks to Invest in OpenAI as Disney Partners on AI Video Generation

Amazon is reportedly in discussions to invest in OpenAI, the company behind ChatGPT, in a deal that could value the AI startup at over $500 billion, according to a source familiar with the matter who spoke to Reuters. The discussions between Amazon and OpenAI remain fluid, with details subject to change. The source indicated that Amazon’s potential investment could exceed $10 billion, though it could also decide not to invest at all.

Meanwhile, Walt Disney has confirmed a $1 billion investment in OpenAI, establishing a three-year partnership that allows OpenAI to use characters from Disney’s Star Wars, Pixar, and Marvel franchises in its Sora AI video generator. This collaboration marks a significant step in Hollywood’s adoption of generative artificial intelligence, addressing concerns about AI’s impact on creative jobs and intellectual property rights while reshaping content creation in the industry.

Under the licensing agreement, Sora and ChatGPT Images will begin generating AI-powered videos using Disney characters such as Mickey Mouse, Cinderella, and Mufasa, starting early next year. The deal explicitly excludes the use of any talent likenesses or voices, ensuring that actors’ rights are preserved. Disney CEO Bob Iger emphasized that the collaboration aims to expand storytelling through generative AI responsibly, while protecting creators and their original works.

Hollywood unions, which continue to monitor the growing role of AI in the entertainment industry, have responded cautiously to the deal, reflecting ongoing concerns about how artificial intelligence might affect employment and creative control in film and television production.