Disney is investing $1 billion in OpenAI and will let users create videos featuring over 200 of its characters through the Sora app. The partnership aims to explore AI's role in storytelling while addressing copyright concerns. Disney is also using OpenAI's technology internally and pursuing legal action against companies it believes infringe on its copyrights.

Disney has filed a lawsuit against the AI image generator Midjourney for allegedly producing images of its copyrighted characters, marking the first legal action by major Hollywood studios against a generative AI company. The lawsuit focuses on character copyright and aims to establish a legal precedent, as Disney seeks a settlement rather than simply shutting down Midjourney.