Walt Disney (DIS) invests $1 billion in OpenAI deal

Walt Disney (DIS) invests  billion in OpenAI deal
Walt Disney (DIS) invests  billion in OpenAI deal

The Walt Disney Company (NYSE:DIS) is one of the 14 Best Large Cap Stocks to Invest in Now. On December 11, Reuters reported that The Walt Disney Company (NYSE:DIS) is making a $1 billion investment in OpenAI. This agreement will allow OpenAI to use characters from Star Wars, Pixar and Marvel in its Sora AI video generator.

This three-year partnership agreement between OpenAI and The Walt Disney Company (NYSE:DIS) has the potential to change the way Hollywood creates content and marks a key moment in Hollywood’s adoption of generative AI. It also avoids concerns that AI will harm jobs or intellectual property rights.

Walt Disney (DIS) invests $1 billion in OpenAI deal
Walt Disney (DIS) invests $1 billion in OpenAI deal

Under the licensing agreement, starting in early 2026, Sora and ChatGPT Images will generate videos featuring Disney characters such as Mufasa, Cinderella and Mickey Mouse. The agreement does not include images or voices of talent.

The Walt Disney Company (NYSE:DIS) CEO Bob Iger said this collaboration will carefully expand the company’s storytelling with generative AI. You will also respect and protect creators and their work.

Iger first hinted at this strategy during an investor call in November, where he noted that AI would allow The Walt Disney Company (NYSE:DIS) to offer tools to help Disney+ users create and enjoy user-generated content, primarily in short form. Under the agreement, a selection of user-generated videos will be available for streaming on Disney+. This will allow the platform to benefit from the growing appeal of short-form video content.

The Walt Disney Company (NYSE:DIS) is an American multinational media and entertainment conglomerate that operates through three primary business segments: Disney Entertainment, ESPN, and Disney Experiences.

While we recognize DIS’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.

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Disclosure: None. This article was originally published in Internal jumpsuit.

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