Disney to invest $1 billion in OpenAI, permit use of characters on AI video generator
In this photo illustration, a silhouetted individual is seen holding a mobile phone with a Sora of ChatGPT OpenAI logo displayed in the background. (Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)
(NEW YORK) — The Walt Disney Company on Thursday announced plans to invest $1 billion in artificial intelligence company OpenAI, in a deal that will grant the company access to copyrighted characters from “Star Wars,” Marvel and other properties for users of AI short-form video generator Sora.
“The rapid advancement of artificial intelligence marks an important moment for our industry, and through this collaboration with OpenAI we will thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works,” Disney CEO Bob Iger said in a statement on Thursday.
Disney is the parent company of ABC News.
This is a developing story. Please check back for updates.
Traders work on the floor of the New York Stock Exchange (NYSE) on Nov. 7, 2025 in New York City. (Spencer Platt/Getty Images)
(NEW YORK) — Stocks closed markedly higher on Monday after the Senate voted hours earlier to advance a potential deal on the government shutdown, which has weighed on economic output and cast uncertainty over markets for well over a month.
The Dow Jones Industrial Average closed up 380 points, or 0.8%, while the S&P 500 climbed 1.5%. The tech-heavy Nasdaq increased 2.2%.
Lawmakers in a rare Sunday session cleared a key hurdle toward potentially reopening the government by advancing a short-term funding bill by a razor-thin vote of 60-40, just meeting the threshold for it to pass.
Stocks rebounded on Monday after major indices registered a loss over the previous week, a rare blemish that hadn’t happened in four weeks prior.
The economy has shown some signs of strain during the shutdown.
A report on Friday revealed a decline in shopper attitudes in November, leaving consumer sentiment at its lowest point since 2022, University of Michigan data showed.
The survey came days after data from the Federal Reserve Bank of New York showed Americans’ household debt levels have reached a record high.
Those developments could hold significant stakes for the wider economy, since consumer spending accounts for about two-thirds of U.S. economic activity.
Still, markets have proven resilient over a turbulent year marked by fluctuating tariffs, stubborn inflation and a slowdown of hiring. The tech giants have defied these headwinds, buoyed in part by an investment boom in artificial intelligence.
The S&P 500 has soared 14% in 2025, while the Dow has climbed 10%. The Nasdaq has surged 19%.
The Senate reconvened on Monday to continue working toward ending the federal government shutdown, which is now in its 41st day.
There are still some procedural measures necessary for the Senate to pass a deal on the government shutdown and send it for potential approval in the Republican-controlled House.
A potential resolution of the government shutdown would restore jobs and backpay for thousands of federal employees, which is expected to provide a jolt for the U.S. economy.
The federal government would also resume the collection and release of key government day in the event of shutdown deal, allowing investors to observe monthly inflation and hiring reports.
The Federal Reserve is set to issue a decision on the level of interest rates early next month. The central bank has slashed interest rates a quarter of a percentage point at each of its last two meetings.
(NEW YORK) — Prices for home appliances, cars and auto parts could be impacted by President Donald Trump’s decision overnight to end trade talks between the U.S. and Canada, some trade experts told ABC News.
Trump said he’s terminating trade negotiations with Canada in response to a negative TV advertisement about tariffs rolled out earlier this month by the Canadian province of Ontario.
“TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” Trump posted on his social media platform.
The ad features audio with excerpts of a 1987 address by then-President Ronald Reagan that came as he imposed some duties on Japanese products but cautioned about the long-term economic risks of high tariffs and the threat of a trade war.
Trump claimed, without evidence, that the ad aimed to sway the outcome of a U.S. Supreme Court case over the tariffs, which is set to come before justices next month. In a post on X, Ontario Premier Doug Ford urged cooperation between the two countries.
“Canada and the United States are friends, neighbours and allies. President Ronald Reagan knew that we are stronger together. God bless Canada and God bless the United States,” Ford said.
Canadian goods currently face steep 35% tariffs, though many of those exports to the U.S. remain duty-free because the policy excludes products compliant with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.
A separate swathe of Canadian products is subject to sector-specific tariffs, such as 50% levies on steel and aluminum.
In trade negotiations, Canada sought to reduce or lift the steel and aluminum tariffs, but a halt to discussions could keep those in place for an extended period, experts said. Canada is the top exporter of steel and aluminum to the U.S.
Steel and aluminum are found in a host of goods, including home appliances, food packaging, cars and auto parts, some experts added.
“Trade talks could’ve resulted in the lowering of existing tariffs,” Michael Sposi, a professor of economics at Southern Methodist University, told ABC News.
Steel is the top material by weight in a car, accounting for about 60% of its weight, according to the American Iron and Steel Institute.
When steel imports face stiff taxes, the price of steel paid by U.S. manufacturers rises, meaning higher input costs for automakers, experts previously told ABC News. Those companies, they added, are likely to hike prices for consumers as a means of offsetting some of those costs.
Major home appliances — such as refrigerators, dishwashers and washing machines — rely in part on steel, making them vulnerable to elevated prices due to tariffs.
In June, Trump suspended talks over Canada’s plans for a Digital Service Tax, which would have imposed a 3% levy on U.S. technology companies. Talks resumed days later after Canada abandoned plans for the tax.
Last year, the U.S. ran a trade deficit with Canada of $63 billion, which marked a slight decrease from the previous year, according to the Office of the U.S. Trade Representative. By comparison, the U.S. ran a larger trade deficit last year with its other top trading partners: A $295 billion deficit with China and a $171 billion deficit with Mexico.
The U.S. makes up the destination for roughly three-quarters of Canadian exports, while such products make up about 11% of U.S. imports.
The list of major Canadian exports to the U.S. also includes crude oil, natural gas and motor vehicles, though many of those goods remain tariff-free on account of their compliance with the USMCA.
The USMCA is up for a joint review next year, giving the countries an opportunity to amend the agreement. If Trump’s renewed frustrations affect the outcome of those negotiations, it could impact the price of some additional imported products such as cars, Tyler Schipper, a professor of economics at the University of St. Thomas, told ABC News.
“The breakdown of these talks about current tariffs probably doesn’t bode well for those negotiations,” Schipper said.
In this photo illustration, a smartphone displays the Paramount Skydance logo in front of a blurred Warner Bros. Discovery emblem, on December 6, 2025, in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images)
(NEW YORK) — Paramount said Monday it is making a bid to acquire Warner Bros. Discovery, swooping in just days after Netflix announced a $83 billion deal to purchase a large part of the media giant.
Warner Bros. Discovery (WBD) shareholders would be offered $30 per share, which represents a 139% premium to the stock price as of Sept. 10, 2025, Paramount said.
“Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion,” David Ellison, chairman and CEO of Paramount, said in a statement. “We believe the WBD Board of Directors is pursuing an inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process. We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares.”
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