Tech
A screenshot from the complaint. (Source: PACER)
A screenshot from the complaint (Source: PACER)

Disney, NBCUniversal sue AI image generation startup Midjourney for copyright infringement

A new lawsuit accuses Midjourney of being a “bottomless pit of plagiarism,” infringing the copyright of dozens of the most valuable characters from Marvel, Disney, Pixar, and DreamWorks.

Jon Keegan
6/11/25 11:15AM

Midjourney, the early AI image generation startup, is being sued by Disney and NBCUniversal on allegations of copyright infringement.

This is a significant case with huge consequences for the AI industry, as its the first to challenge this type of alleged AI-generated image copyright violation. Big Tech companies like OpenAI, Google, Meta, and Microsoft all offer some form of generative-AI image creation via chatbots.

The 110-page complaint is littered with what Disney and NBCUniversal say are clear examples of their characters being generated via Midjourney:

  • Darth Vader, Stormtroopers (“Star Wars”)

  • DreamWorks’ Minions, Shrek, and Po (Kung Fu Panda”)

  • Marvel’s Spider-Man, Iron Man, The Hulk

  • Pixar’s Buzz Lightyear (“Toy Story”), Wall-E, and Lightning McQueen (“Cars”)

  • Disney’s Simpsons, Ariel (“The Little Mermaid”), Elsa (Frozen), Aladdin, and Mufasa (The Lion King)

The complaint includes specific prompts that were used to generate the examples like:

“Darth Vader walking around the Death Star with a red lightsaber”

A screenshot from the complaint
A screenshot from the complaint.

The list of examples included in the document covers some of the most recognizable, highest-grossing intellectual property from the past 50 years of American pop culture.

The plaintiffs call Midjourney “a bottomless pit of plagiarism,” writing in the complaint:

By helping itself to Plaintiffs’ copyrighted works, and then distributing images (and soon videos) that blatantly incorporate and copy Disney’s and Universal’s famous characters — without investing a penny in their creation — Midjourney is the quintessential copyright free-rider and a bottomless pit of plagiarism. Piracy is piracy, and whether an infringing image or video is made with AI or another technology does not make it any less infringing.

The complaint also says that Midjourney charges between $10 and $120 per month for subscriptions to the service, that the company did not respond to letters from Disney alerting it of the alleged copyright violations, and that after acknowledging the letter, Midjourney did not respond.

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OpenAI and Microsoft reach agreement that moves OpenAI closer to for-profit status

In a joint statement, OpenAI and Microsoft announced a “non-binding memorandum of understanding” for their renegotiated $13 billion partnership, which was a source of recent tension between the two companies.

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling nonprofit arm would hold an equity stake in the PBC valued at $100 billion, which would make it “one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission — and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

Settling the agreement is a requirement to clear the way for OpenAI to convert to a for-profit public benefit corporation, which it must do before a year-end deadline to secure a $20 billion investment from SoftBank.

OpenAI also announced that the controlling nonprofit arm would hold an equity stake in the PBC valued at $100 billion, which would make it “one of the most well-resourced philanthropic organizations in the world.”

The statement read:

“This recapitalization would also enable us to raise the capital required to accomplish our mission — and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”

tech
Rani Molla
9/11/25

BofA doesn’t expect Tesla’s ride-share service to have an impact on Uber or Lyft this year

Analysts at Bank of America Global Research compared Tesla’s new Bay Area ride-sharing service with its rivals and found that, for now, its not much competition for Uber and Lyft. “Tesla scale in SF is still small, and we dont expect impact on Uber/Lyft financial performance in 25,” they wrote.

Tesla is operating an unknown number of cars with drivers using supervised full self-driving in the Bay Area, and roughly 30 autonomous robotaxis in Austin. The company has allowed the public to download its Robotaxi app and join a waitlist, but it hasn’t said how many people have been let in off that waitlist.

While the analysts found that Tesla ride-shares are cheaper than traditional ride-share services like Uber and Lyft, the wait times are a lot longer (nine-minute wait times on average, when cars were available at all) and the process has more friction. They also said the “nature of [a] Tesla FSD ‘driver’ is slightly more aggressive than a Waymo,” the Google-owned company that’s currently operating 800 vehicles in the Bay Area.

APPLE INTELLIGENCE

Apple AI was MIA at iPhone event

A year and a half into a bungled rollout of AI into Apple’s products, Apple Intelligence was barely mentioned at the “Awe Dropping” event.

Jon Keegan9/10/25
tech
Jon Keegan
9/10/25

Oracle’s massive sales backlog is thanks to a $300 billion deal with OpenAI, WSJ reports

OpenAI has signed a massive deal to purchase $300 billion worth of cloud computing capacity from Oracle, according to a report from The Wall Street Journal.

The report notes that the five-year deal would be one of the largest cloud computing contracts ever signed, requiring 4.5 gigawatts of capacity.

The news is prompting shares to pare some of their massive gains, presumably because of concerns about counterparty and concentration risk.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

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