Disney has announced a major $1 billion investment in OpenAI and a licensing deal allowing the use of its iconic characters from Marvel, Pixar, and Star Wars for AI-generated video clips, signaling a strategic move to monetize its IP through AI technology. This partnership aims to responsibly expand storytelling and fan engagement, with Disney also allowing fan-created short videos on Disney+ starting in early 2026. The deal contrasts with Disney’s previous legal actions against AI companies like Midjourney, which it accused of copyright infringement. Meanwhile, Disney has issued a cease-and-desist letter to Google, alleging massive copyright violations through AI systems that reproduce Disney’s copyrighted characters and franchises without authorization, including images of Darth Vader and characters from Frozen, The Lion King, and Marvel. Disney claims Google’s AI services are infringing on its intellectual property on a large scale, using its characters to generate images and videos without permission, and falsely branding these outputs with Google’s Gemini logo. Disney’s CEO Bob Iger emphasized the importance of protecting creative rights and expressed concern over Google's alleged infringements, which follow similar actions against Meta and Character.AI. The legal and strategic moves reflect Disney’s efforts to safeguard its IP amid rapid AI advancements, while also exploring new revenue streams through AI licensing and fan engagement initiatives.