Disney has issued a formal cease-and-desist letter accusing Google of massive copyright infringement in connection with its generative AI models, including Gemini, Veo, Imagen, and Nano Banana AI. The letter, obtained by The Verge, claims that Google’s AI systems have been trained on vast amounts of Disney’s copyrighted content—spanning characters and stories from Frozen, Deadpool, Star Wars, Guardians of the Galaxy, and other major franchises—resulting in AI-generated outputs that closely resemble Disney’s intellectual property. Disney asserts that this constitutes unauthorized use and commercial exploitation of its works, calling Google’s actions a “virtual vending machine” that floods the market with infringing content while generating significant profits. The letter, sent on Wednesday, comes just one day before Disney announced a landmark $1 billion partnership with OpenAI. Under the new deal, users of OpenAI’s Sora video generation tool will be able to create videos featuring over 200 characters from Disney, Marvel, Pixar, and Star Wars, with the content set to be available on Disney+. This high-profile collaboration with OpenAI stands in stark contrast to Disney’s legal action against Google, underscoring the company’s strategic move to license its IP for AI while aggressively defending it against unauthorized use. Disney’s legal complaint centers on the claim that Google trained its AI models on a “large corpus” of Disney’s copyrighted works without permission. The company argues that this training process violates copyright law and undermines its ability to control the use of its characters and stories. It further alleges that Google has ignored repeated attempts to engage in dialogue about copyright safeguards, despite having the technical capability to implement them. In response, Google has pushed back, stating it maintains a “longstanding and mutually beneficial relationship” with Disney. Spokesperson Julie McAlister emphasized that Google uses publicly available data from the open web to train its AI systems, which is consistent with industry practices. She also highlighted Google’s existing copyright protection tools, such as Google-extended and Content ID on YouTube, which allow content owners to monitor and manage how their material is used online. Google maintains that it is committed to working with rights holders and will continue to engage with Disney. The timing of the cease-and-desist letter—just before the OpenAI deal was announced—has drawn attention, suggesting Disney is taking a dual approach: licensing its IP to select partners while taking legal action against others it views as infringing. This strategy reflects a broader trend in the entertainment industry, where major studios are seeking to control and profit from AI use of their content, rather than simply resist it. The dispute highlights the growing legal and ethical challenges surrounding AI training data. While companies like Google and OpenAI argue that using publicly available web content for training is a form of fair use and essential for innovation, content creators and rights holders counter that this amounts to mass copying without consent. The outcome of this conflict could set a precedent for how AI models are trained and how copyrighted works are protected in the digital age. As AI-generated content becomes more widespread, the tension between innovation and intellectual property rights will only intensify. Disney’s actions signal that major studios are no longer willing to stand by passively as AI companies use their work—especially when those companies are not offering compensation or clear licensing terms. The coming months will likely see more legal battles, negotiations, and policy developments as the industry grapples with the future of AI and copyright.