Disney's Game-Changing Deal with OpenAI

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0:34If you're into podcasts, chances are you have something to say too. With RSS.com, starting your own podcast is free and easy. Upload an episode and we distribute it to Apple Podcasts, Spotify, Amazon Music, and more. Track your listeners, see where they're from, and start earning from ads just like this. If you've been thinking about starting a podcast, this is your sign. Start your new podcast for free today at RSS.com. Welcome back to the podcast. We have some major news today. Disney, of all companies, made a deal with OpenAI licensing some of their characters. So we're going to really talk about what this means for Sora, for video generation, some maybe fun things you could do with it.

1:19And it's just, yeah, it's a really big piece of news. So before we get into that, Jamie, why don't you tell them about our school community? yeah every single week jamie and i record a exclusive piece of content we post over on our school community for 19 a month right now we have a holiday discount for 19 a month for christmas this is your guys's christmas present in the past we've had this at a hundred dollars a month so it is currently heavily discounted if you lock in that price it'll never be raised on you so go join the school community if you want that this week we recorded a whole episode on how to make super realistic voice clones of yourself or another person using 11 labs.

1:58This is something that like they have a cloning feature. It never it sounds very robotic. So I've cracked the code on making it actually sound very realistic. If that's something that's interesting to you. We've also talked about how to become an AI consultant and how Jamie made over$20 ,000 on a side hustle last year, how he's scaling it up this year with AI. There's a ton of different side hustles and businesses all using AI only on the school community. So there's a link in the description if you want to go check that out. All right, talking about Disney, this is a super interesting deal. A couple different things happened here.

2:30Number one, Disney invested$1 billion into OpenAI in an equity deal. So they want equity in OpenAI. They're going to just give them a billion dollars. But at the same time, Disney signed a licensing deal where OpenAI is licensing Disney's technology or basically, I mean, you know, the likeness of all of their cartoon characters, Mickey Mouse and everyone else to get included into open AI products. So what's kind of interesting here is it's like, it's like a double deal. This is a classic open AI move where they like, they kind of like pump up their numbers by like, we're going to like Disney, you're going to give us a billion dollars, and then we're going to give you money to license something else.

3:07So it's really like both of the companies are, are, you know, maybe only having to spend, you know, Disney maybe was only spending 500 ,000 or a million or 700 million because maybe OpenAI is going to give them 300 million back. Or maybe it's a wash. You know, Disney gives OpenAI a billion dollars and OpenAI gives Disney a billion dollars back for some sort of deal. I don't know the terms of the OpenAI Disney deal. We only know the equity that Disney is purchasing. But it's kind of funny because both companies in this case get a right on their, you know, their quarterly revenue, you know, plus a billion dollars if they both swap a billion dollars or whatever the numbers are, right?

3:40You guys get the idea. This has caused a lot of people to call this, you know, cooking the books. This is just like an accounting thing. At the end of the day, they are, you know, trading goods and services. It's just funny when it's, you know, directly between two companies. So I don't know. What are your thoughts on that, Jamie? Yeah, I mean, I honestly, I think this is a smart move on Disney because they've been, you know, over the years, they've been really good at doing copyright lawsuits and cease and desist. They're really good at keeping their brand pure, but I think they kind of realize with AI moving forward, they might not be able to do that on a large scale, at least with people ripping off their characters.

4:20So I think this is a way for them to kind of get into that space and kind of save themselves a little bit and also kind of evolve. So Bob Eiger, the CEO of Disney, had this quote. He said, no human generation has ever stood in the way of technological advance. and we don't intend to try. So basically he's saying we can either join them or they're going to beat us. So I think that's a really smart move in their part. And I think it's also really kind of exciting for people who are creating content with Sora to be able to integrate Disney characters into your content. I think it's super cool. So I'm excited for it.

4:58Yeah, I think this is interesting. I think this is a great deal. In this deal, OpenAI is going to get, But they're going to be able to create over 200 different characters from Disney, Marvel, Pixar, and also Star Wars. All of that is going to be in a couple different places. Everyone's talking about like Sora. Like, oh my gosh, it's going to be inside of Sora. You're going to be able to generate these clips. I think less people are talking about is you actually can get it inside of OpenAI's image generator built into Chachapiti, which I think is going to be way more visible and used. like essentially you're going to start be able to generate AI Disney characters.

5:34I think of my wife who creates like coloring books and stuff like you can go all of a sudden, like, there's no licensing, there's nothing you can just go I mean, assuming you're not reselling Disney characters for yourself. You can go and generate like I'm sure my wife is going to go generate Disney coloring book pages for my kids on chat. Yeah, now, it's gonna be super easy to do that. So I actually think this gives opening a competitive advantage. What I will say is this is only for one year. So it's an exclusive contract for one year. No other companies get Disney's like pictures inside of their models for one year.

6:07After that, Disney is going to go and license this to everybody and make a killing. I have no doubt. Google, Anthropic, everyone else is going to be signing up for this. One thing that is interesting on the same day that they signed this deal, they also sent a cease and desist letter to Google saying that Google had infringed on their copyrights, that they had their characters being generated inside of their models, that they used their characters to train their models. And so Google has not denied this, but it did say that it was going to quote unquote engage with Disney. So I mean, Disney just wants money, right?

6:40They're like, look, you used our characters, you used our stuff. It's pretty easy and obvious to see when that happens. So Google is going to work with them. Google has done these deals in the past with other companies. They have like a$100 million, I'm trying to remember if it's$100 or$300 million. It's one of the two. So don't quote me on that. But they have a, let's just say it's$100 million deal with Reddit right now where they can license for per year all of Reddit's content inside of Gemini. I think this is a fantastic deal. I think we're going to see anyone with these big data sets, Disney, Reddit, all these other places will just charge licensing for people to train their models on their data.

7:18Totally. Yeah, I mean, I think, again, I think it's a smart move by Disney and what do you think? Do you think people who get in early on this, let's say I'm a content creator and I start using Disney characters, do you think, is there a window of opportunity here to potentially go viral with my content because I can do Disney characters? Like, so technically, yes, because you can use it on Sora so you could go viral on Sora on their platform. I don't know the legality of taking it out of the AI generated platform, right? I don't think I can make a Moana coloring book just because ChatGPT can generate Moana.

7:56I don't think I could do that and then go sell it. I think Google would get mad at me for stealing their stuff. So then it makes me wonder like, okay, well, if I generate something on Soar, I pull it out, I post it on YouTube as like a Moana clip where it's like Maui doing some crazy dance. I'm like, are they going to get mad at me? I think that you might be okay with if it's just posting the content. is probably if I like, maybe let's say I made a Maui short film all about the backstory of Maui and then I tried to like get it posted on Amazon Prime. Obviously Google is gonna sue the crap out of me.

8:30So there's like some interesting fine lines, right? Like what is considered content that you might share and what is considered a product that Google is gonna come after you for? So those are the things that you'll have to think about. But I do think, yeah, you're gonna be able to, as soon as this drops, as soon as this integration happens, I think you could definitely go viral because no one else has seen all these crazy like videos of Disney characters doing crazy things it was just banned and blocked before now you're gonna be able to do it and I think you could definitely go viral yeah and surely there's got to be a consequence if you you know remove the watermark from so of Sora and then post on Instagram and you know yeah you know thousands of dollars in ad revenue you might might run into some trouble but either way it's still exciting I'm excited about it for a lot of different reasons but we'll continue to follow this story you guys and keep you updated.

9:19But if you got any value out of this episode, we'd really appreciate a rating or review wherever you're listening. Those help us out a lot and help us reach more people. And again, don't forget to check out our AI Hustle School community if you're interested in growing your business using AI or making money on the side. Thanks for listening and we'll see you next time.

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