The lawsuit alleges that Midjourney's AI image- and video-generation technologies "blatantly incorporate and copy Disney's and Universal's famous characters," like Yoda, Shrek and Marvel superheroes.

Entertainment giants Disney and Universal have come out swinging against AI company Midjourney for infringing on dozens of beloved characters

Disney and NBCUniversal have teamed up to sue Midjourney, a generative AI company, accusing it of copyright infringement, according to a copy of the complaint obtained by Axios. Why it matters: It's the first legal action that major Hollywood studios have taken against a generative AI company.