The Walt Disney Company and OpenAI Partner on Sora

buried the lede:

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

I say this with no snark or disdain: Sam has mastered the art of the flywheel.

Re licensed ai videos, if anyone wants to see the perspective the C-suites are being sold on, check out this episode of Belloni's The Town, in which they discuss the vision for AI + IP https://overcast.fm/+AA4DU9JreIE

Disney said "Our IP is $1B for a 3yr license, or we sue"

Altman said "We can pay with equity, but let's frame it as an investment"

No cash exchanged

Disney is actually paying $1B so it makes no sense. OpenAI gets the IP plus $1B.

I'm actually curious, how do we know for a fact that this is the case?

Could you elaborate?

Do you mean to say they’ll never take the payment?

What are the terms? It is not at all clear from the announcement. "part of this three-year licensing agreement", it _could_ mean the license cost is $1 billion, which Disney in turn invests in OpenAI in return for equity, and they're calling it "investment" (that's what's hypothesized above, but I don't think we know). Disney surely gets something for the license other than the privilege of buying $1 billion in OpenAI stock at their most recent valuation price.