Walt Disney Co. (NYSE: DIS) is investing $1 billion in OpenAI, a move that could disrupt the entertainment industry with generative AI tools. Through a three-year licensing deal, Disney will bring classic characters to Sora, OpenAI’s text-to-video platform, for user-prompted social videos. Disney commits to responsible AI use and will become a major customer of OpenAI, using ChatGPT internally. The deal benefits both companies, allowing Disney to experiment with AI in content creation while giving OpenAI exposure to popular characters. Disney stock rose 2.4% on the news, signaling investor approval of the long-term strategy.

Read more at Nasdaq: Disney and OpenAI Are Teaming Up. Here’s What It Means for Investors.