Hello, Alexei Oreskovic pitching in for Allie today. Well folks, this week had it all: A new OpenAI model, reports of an upcoming SpaceX IPO, and even a Waymo baby! And to top it all off, OpenAI and Disney announced a surprise partnership that will include a $1 billion investment in OpenAI and enable OpenAI users to create AI-generated videos with Mickey Mouse and hundreds of other Disney characters.
The 3-year deal is a huge win for OpenAI (all the more so given that Disney simultaneously sent a cease-and-desist letter to Google, accusing the internet giant and OpenAI arch-rival of infringing its IP via its AI systems on a “massive scale”). The question is: Why is the Mouse House rolling out the red carpet for the ChatGPT maker?
You don’t need a lot of imagination to guess the sordid scenarios that await Disney’s family-friendly cast of characters now that the tortured souls of the internet will have carte blanche to feed them into the AI nightmare machine. There will be safeguards in place to prevent Mickey and friends from doing drugs, fornicating, and engaging in other unseemly or illegal behavior, a source told the Wall Street Journal. And I’m sure absolutely no one will figure out how to bypass those guardrails.
Entertainment businesses need to stay ahead of the trends and make sure they’re relevant to the next generation of consumers, of course. So hooking up with OpenAI is an obvious way for a company to stay connected with the kids. But if there’s any company that would seem in less immediate danger of losing the kids, it’s the company with The Lion King, The Little Mermaid, Donald Duck, and Iron Man.
This will certainly be an interesting adventure to watch. And perhaps Disney’s deal with OpenAI will prove prescient and astute. I just hope Donald can hold his liquor.
See you Monday,
Alexei Oreskovic X: @lexnfx Email: [email protected] Submit a deal for the Term Sheet newsletter here.
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The post Disney plus OpenAI: What could possibly go wrong? appeared first on Fortune.
