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Warner Bros. Discovery sues AI firm for Batman, Superman copyright infringement | Business

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Warner Bros. Discovery has joined a key copyright infringement case that could test the legal bounds of using artificial intelligence to create digital replicas of well-known characters.

The company on Thursday filed a copyright infringement lawsuit in Los Angeles federal court against AI company Midjourney Inc., alleging its image generator produces blatant rip-offs of Warner’s well-known and copyright-protected characters, including Superman, Batman, Wonder Woman and Scooby-Doo.

With the suit, Warner Bros. Discovery joins a legal fight brought in June by Walt Disney Co. and Comcast’s Universal Pictures. The Disney and Universal lawsuit marked the first salvo by major studios to elevate the legal struggle over AI-enabled intellectual property, calling it content theft.

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The addition of Warner Bros. Discovery could boost Disney’s and Universal’s case. The three entertainment industry leaders control much of the most valuable intellectual property in Hollywood.

Disney’s stable includes Star Wars, Woody the Cowboy, Winnie the Pooh, the Simpsons and Disney princesses. Universal boasts such beasts as the Hulk, Shrek and the Minions.

Warner Bros. controls characters from DC Comics , Looney Tunes and Hanna-Barbera .

It sued on behalf of Warner Bros. , DC Comics, Turner Entertainment Co., Hanna-Barbera Productions, Inc., and the Cartoon Network. The company, which asked for a jury trial, is seeking unspecified damages and an injunction.

The companies allege the four-year-old San Francisco firm Midjourney, which has millions of paid subscribers, built its business off decades of hard work by Hollywood artists, writers and studios.

Midjourney, on its website, describes itself as “an independent research lab exploring new mediums of thought and expanding the imaginative powers of the human species.” Midjourney offers its subscribers use of an image generator to create high-resolution digital depictions, including famous characters like Batman.

Warner Bros. Discovery, Disney and Universal allege that Midjourney trained its generative AI programs by using their copyrighted works. They contend that Midjourney-enabled creations are almost identical to their original copyrighted cartoons. Warner Bros.’ lawsuit included side-by-side renderings of its characters and Midjourney’s reproductions to illustrate the identical details, such as the color of Scooby-Doo’s collar and fur.

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Midjourney did not immediately respond to a request for comment.

“The heart of what we do is develop stories and characters to entertain our audiences, bringing to life the vision and passion of our creative partners,” Warner Bros. Discovery said in a statement. “Midjourney is blatantly and purposefully infringing copyrighted works, and we filed this suit to protect our content, our partners, and our investments.”

Warner Bros. Discovery pointed to the value of its franchises, including its DC Comics movies. Films featuring the DC Extended Universe, which were released from 2018 through 2023, generated more than $7 billion in global ticket sales. Each film earned an average of $479 million, the lawsuit said.

“Only Warner Bros. Discovery has the right under U.S. Copyright law to build a business around reproducing, preparing derivative works, distributing, publicly displaying, and performing images and videos featuring its copyrighted characters,” the company said in its lawsuit.

Such exclusive rights and protections allow Warner Bros. Discovery and other studios to make massive investments in content, the lawsuit said, adding: “That is the cornerstone of the U.S. Copyright Act.”

Hollywood performers and writers in recent years have voiced grave concerns about the rapid development of generative AI. The technology is expected to revolutionize the film industry and lead to fewer jobs.

Curbs on the use of generative AI became a sticking point in the historic 2023 strikes by actors and writers.

Disney and Universal applauded Warner Bros. for joining their legal battle.

“Disney is committed to protecting our creators and innovators, and we’re pleased to be joined by Warner Bros. Discovery in the fight against Midjourney’s blatant copyright infringement,” Disney said in a statement.



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Dublin AI business Kreoh has eyes on American and European expansion

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Imperfect AI creates more editing business opportunities – DIGITIMES Asia

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OpenAI forecasts $115 billion business spend on AI rollout by 2029

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OpenAI has elevated its cash burn forecast this year through 2029 to a total of $115 billion. The company’s recent cash burn expectation is also $80 billion higher than it previously projected. 

According to a report by The Information, the surge in cash burn for OpenAI comes at a time when it’s ramping up spending to power the artificial intelligence behind its popular ChatGPT chatbot. The tech firm has also become one of the world’s biggest renters of cloud services.

OpenAI plans to develop its chips and data center facilities

The source revealed that the AI company expects to burn over $8 billion this year. OpenAI had forecasted early in the year that it would only burn around $1.5 billion.

According to the report, OpenAI doubled its cash burn expectations for 2026 to more than $17 billion, surpassing its previous forecast of $10 billion. The firm also projects a $35 billion cash burn in 2027 and $45 billion in 2028. 

The FT also disclosed on Thursday that the Silicon Valley startup plans to develop its data center server chips and facilities to power its technology. According to the report, the initiative aims to control the tech company’s surging operational costs.

The firm relies on substantial computing power to train and run its systems. The company’s CEO, Sam Altman, has also advocated the need for increased computing power to accommodate the growing demand for AI products such as ChatGPT.

Deloitte’s 2025 AI infrastructure Survey revealed that the energy demands of AI are straining traditional power grids. According to the study, 79% of executives anticipate increased power demand through the next decade, with grid stress emerging as a top challenge.

The source added that U.S. semiconductor giant Broadcom will partner with OpenAI to produce the first set of chips and start shipping them by next year. Also, OpenAI allegedly plans to use the chips internally rather than selling them for external clients. 

Broadcom’s CEO, Hock Tan, hinted the company had partnered with an undisclosed customer that committed to $10 billion in orders. During a call with analysts, he revealed the firm had secured a fourth customer to boost its custom AI chip division. Tan stated the collaboration with OpenAI has enhanced its growth outlook for fiscal 2026 by generating immediate and substantial demand. 

OpenAI partners with Broadcom to produce chips

OpenAI also partnered with Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) nearly a year ago to develop its first in-house chip. The firm was also planning to add AMD chips alongside Nvidia chips to meet its surging infrastructure demands.

OpenAI revealed in February plans to reduce its reliance on Nvidia’s chips. The firm said it will finalize the design of the new chip in the next few months and then send it to TSMC for fabrication. OpenAI’s initiative also builds on its ambitious plans to increase its semiconductor production at the Taiwanese company next year.

According to the report, OpenAI hopes to use the new chips to strengthen its negotiating leverage with other chip suppliers, including Nvidia. The company’s in-house team, led by Richard Ho, will design the chip to produce advanced processors with broader capabilities with each new iteration.

OpenAI collaborated with Oracle in July to launch a 4.5-gigawatt data center. The initiative also complements the firm’s $500 billion Stargate project, including investments from Japanese firm SoftBank Group. The tech giant has also collaborated with Google Cloud to supply computing capacity.

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