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Disney’s $1B OpenAI Deal Could Be the End of Old Hollywood As We Know It!

In a stunning reversal of its prior stance, The Walt Disney Company has announced a $1 billion investment in OpenAI, marking a pivotal shift from its earlier AI skepticism. Long wary of how artificial intelligence could disrupt creative industries, Disney is now betting big on generative video, specifically OpenAI’s Sora, to reimagine how fans experience its vast universe of characters. This landmark deal — the Disney OpenAI AI video deal — comes at a time of rising legal tensions between Hollywood studios and tech giants over copyright, voice cloning, and synthetic content. The negotiations, kept under tight wraps for months, reportedly began after Bob Iger’s visit to San Francisco in August 2025 and accelerated once Disney saw competitors using AI tools to create derivative content with its characters.