Disney is making a significant move by investing $1 billion in OpenAI, allowing the company to license its characters for use in AI-generated videos. This three-year agreement enables users to create short videos featuring over 200 characters from Disney, Marvel, Star Wars, and Pixar through OpenAI’s short-form video platform, Sora. Selected videos will be available for streaming on Disney+. The deal reflects a shift in Hollywood's approach to generative AI, which has gained prominence amid recent strikes in the industry. Previously, the focus was mainly on declining box office sales and the challenges posed by streaming services. Now, as AI technology evolves, studios are becoming more concerned about how their copyrighted material is used to train AI models. This partnership illustrates Disney's strategy to leverage AI while also addressing copyright issues associated with its intellectual property.