The Walt Disney Company and OpenAI Partner on Sora

AI has driven the corporate suites of these companies insane.

> As part of the agreement, Disney will make a $1 billion equity investment in OpenAI, and receive warrants to purchase additional equity.

I don't know what kind of hypnosis tricks Sam Altman pulls on these people but the fact that Disney is giving money to OpenAI as part of a deal to give over the rights to its characters is absolutely baffling.

OpenAI and ChatGPT have been pioneering but they're absolutely going to be commoditized. IMO there is at least a 50:50 chance OpenAI equity is going to be next to worthless in the future. That Disney would give over so much value and so much cash for it... insane.

If OpenAI has exclusive rights to AI generation for Disney and other IP rights holders, that would create the kind of moat they've been missing so far.

Thats a business agreement not a moat. And you might have rights to generate the characters but they still need to do something. You only have to look at the repeated Disney flops to see they themselves have no ideas.

And if you're the only company with that business agreement. As long as you still have it, it's a...moat.

Well that’s the thing with moats - they don’t just disappear one day.