Bob Iger Defends Disney’s $1 Billion Investment in OpenAI
The Walt Disney Company shook up the entertainment industry this morning, with the stunning announcement that it was investing $1 billion in OpenAI.
The landmark deal will not only see Disney take equity in OpenAI, but it will also lead to the integration of Disney characters in Sora and the arrival of AI-generated content on Disney+.
Photo: OpenAI
“Bringing together Disney’s iconic stories and characters with OpenAI’s groundbreaking technology puts imagination and creativity directly into the hands of Disney fans in ways we’ve never seen before, giving them richer and more personal ways to connect with the Disney characters and stories they love,” Bob Iger said when the deal was announced.
Disney Has Previously Sued Numerous AI Companies
Disney’s agreement with OpenAI was astonishing, as the company has gone on the offensive against other AI companies.
Midjourney
Over the last several months, Disney filed landmark lawsuits against both Midjourney and MiniMax.
In both legal battles, Disney has repeatedly emphasized the need to protect intellectual property.
Darth Vader A.I. image generated by Midjourney. Photo: New York Times
“We are bullish on the promise of A.I. technology and optimistic about how it can be used responsibly as a tool to further human creativity,” Horacio Gutierrez, Disney’s general counsel, said in an email. “But piracy is piracy, and the fact that it’s done by an A.I. company does not make it any less infringing.”
Bob Iger Defends the Deal
In the aftermath of Disney’s OpenAI announcement, Bob Iger appeared on CNBC’s The Squawk Box to defend Disney’s investment in AI.
“We’re not including name and likeness, nor are we including character voices, so in reality this does not in any way represent a threat to the creators at all — in fact, the opposite, I think it honors them and respects them, in part because there’s a license fee associated with it,” he said (via The Wrap).
Protections Are in Place
In addition to questions about intellectual property, many Disney fans have worried that the new OpenAI deal could lead users to generate tawdry content featuring Disney characters.
Photo: Disney
According to Iger, guardrails have been put in place to ensure that doesn’t happen.
“The other thing it does is it enables us to be comfortable that OpenAI is putting guardrails, essentially, around how these are used, so there’s nothing for us to be concerned about from a consumer perspective, meaning this will be a safe environment and a safe way for consumers to engage with our characters in a new way,” he continued.
Photo: Disney
“Also, let’s be mindful of the fact that these are 30-second videos, so we’re not talking about creating shorts or movies, for that matter.”
A Brave New World
Finally, Iger argued that there is a significant difference between their licensing agreement with OpenAI and unauthorized use of their content by other AI companies and programs.
Photo: Disney
“We’ve been aggressive at protecting our IP and we’ve gone after other companies that have not honored our IP, not respected our IP, not valued it, and this is another example of us doing just that. We’d been in conversation with Google basically expressing our concerns about this and, ultimately, because we didn’t really make any progress, the conversations didn’t bear fruit, we felt we had no choice but to send them a cease and desist.”
As Disney fully embraces the rise of AI, it is clear that Bob Iger and his team will need to walk a fine line.
Photo: Disney
While today’s announcement sounds good in theory, it will take hard work and oversight to ensure things go as planned.
