Commentary: The Disney/Sora fiasco shows the limits of the AI craze

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It was supposed to be Bob Iger’s legacy.On Dec.11, Iger, the departing Disney chief executive, joined OpenAI CEO Sam Altman to announce what they labeled a “landmark” deal enabling users of OpenAI’s text-to-video platform to generate videos featuring “beloved” Disney characters, including even Mickey Mouse.

Iger and Altman embarked on a virtual PR tour, appearing on CNBC to praise each other’s sagacity in grasping this new technology ahead of their rivals in Hollywood and Silicon Valley.The deal encompassed a $1-billion investment by Disney in OpenAI.We want to participate in what Sam is creating.— Then-Disney CEO Bob Iger, praising OpenAI Sam Altman in December, when they announced a partnership deal“We want to participate in what Sam is creating,” Iger said on CNBC, with Altman, occupying an adjacent on-screen window, nodding in acknowledgment.

“Obviously,” Iger continued, “we’ve been mindful of the significant growth in AI” and mentioned OpenAI’s “agreement to both honor and value and respect our content.” Altman told CNBC’s audience that demand from its users for Disney characters was “sort of off the charts.” The deal, he said, represented “a wonderful start for what our customers want to do when it comes to putting themselves in that  . . .  lightsabre fight in Star Wars or making a Buzz Lightyear custom birthday video for their kid.”Commentary on economics and more from a Pulitzer Prize winner.By continuing, you agree to our Terms of Service, which include arbitration and a class action waiver.

You agree that we and our third-party vendors may collect and use your information, including through cookies, pixels and similar technologies, for the purposes set forth in our Privacy Policy such as personalizing your experience and ads.The thrill lasted less than four months.

On March 24, OpenAI announced it was shutting d...