Sam Altman’s $1bn deal with Walt Disney to bring characters such as Mickey Mouse and Luke Skywalker into OpenAI’s artificial intelligence video platform marks an effort to boost the Sora app after it has struggled to build an engaged audience.

The content and investment deal announced on Thursday averts a costly legal showdown over intellectual property but faces serious obstacles to reviving the Sora platform, which is grappling with disappointing uptake and challenging economics.

“The demand for Disney characters in particular from our users is sort of off the charts,” Altman, chief executive, told CNBC on Thursday. He said the deal would be “a wonderful start for what our customers want to do when it comes to putting themselves in that?.?.?.?lightsabre fight in Star Wars or making a Buzz Lightyear custom birthday video for their kid”.