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.

Disney and Universal are suing AI photo generation company Midjourney, marking the first major legal showdown between Hollywood studios and an artificial intelligence company.

Disney and Universal sued popular artificial intelligence image-generator Midjourney on Wednesday, marking the first time major Hollywood companies have taken legal action against a maker of generative AI technology that could upend the entertainment industry.