alt Hacker NewsI read this as "Disney approached OpenAI and threatened to sue them into oblivion --> OpenAI negotiated that Disney will use OpenAI internally for free, and will buy $1B of equity to have an ownership stake in the company".
Disney comes out pretty good from this one; they're going to have a ton of people using the service to create all sorts of stuff that will—on the whole—increase brand awareness and engagement with Disney.
OpenAI comes out pretty good from this, with a customer who's probably not paying much (if anything), $1B additional runway, but reduced ownership of the company.
I think Disney is the winner here.
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I don't really understand why Disney is paying $1B for this. Shouldn't OpenAI be paying Disney to avoid getting sued?
Mickey mouse body slamming the Queen of England for laughs risks sullying their brand
>they're going to have a ton of people using the service to create all sorts of stuff that will—on the whole—increase brand awareness and engagement with Disney.
In the same way making a bunch of porn of a character increases brand awareness and engagement with an IP, sure.
OpenAI got away scot free here in avoiding a billion dollar lawsuit. Disney is gonna further melt away a century dynasty of art and culture. They're both gonna lose long term but I guess they both win for next quarter.