Less than a week after the Warner Bros. Discovery - Netflix deal sent shockwaves through Hollywood, another deal is threatening to upend the entertainment industry.

Walt Disney Co ( DIS +2.42% ) said it would invest $1 billion in OpenAI, the AI juggernaut whose generative AI tools could disrupt a host of industries, including entertainment.

Central to that agreement is that Disney is bringing its classic characters to Sora, OpenAI's text-to-video platform that could change the way TV and movies get made.

What's happening with Disney and OpenAI

As part of a three-year licensing deal, Sora will be able to generate "short, user-prompted social videos that can be viewed and shared by fans, drawing on more than 200 Disney, Marvel, Pixar and Star Wars characters," some of which

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