Squawk on the Street Disney-OpenAI Agreement, Oracle Tumbles, Fed After the Rate Cut 12/11/25
10 snips
Dec 11, 2025 Disney's stunning $1 billion investment in OpenAI is reshaping the landscape of AI and entertainment, licensing over 200 characters for new content. Oracle faces scrutiny as its shares tumble due to a revenue miss and increased capex spending, raising concerns about AI financing. The Fed's recent rate cut sparks discussions about the economic outlook, while Time magazine honors AI pioneers as Person of the Year. As the battle for Warner Bros. intensifies, Netflix and Paramount are poised for a high-stakes showdown.
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Disney Stakes Claim In Generative AI
- Disney will license 200+ characters to OpenAI's Sora and take economic upside via a $1B investment and warrants.
- David Faber frames this as IP owners picking teams and legitimizing paid licensing in generative AI.
IP Owners Push Both Law And Licensing
- Disney simultaneously sent Google a cease-and-desist alleging unauthorized use of its works to train AI models.
- The move signals IP owners will both litigate and make commercial deals to control AI uses.
Verify Funding Before Trusting Buildouts
- Verify OpenAI's funding and contractual commitments when assessing vendors tied to large-capex providers like Oracle.
- Ask direct questions about how OpenAI will meet obligations before pricing data-center risk.
