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Warner Bros Discovery Sues Midjourney Over Use of Superman, Scooby-Doo in AI Images

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Warner Bros Discovery (WBD.O) has filed a lawsuit against AI photo-generation company Midjourney, accusing it of illegally using iconic characters such as Superman, Batman, Wonder Woman, Bugs Bunny, and Scooby-Doo to train and generate images without authorization.

In a complaint lodged in Los Angeles federal court, Warner Bros alleged that Midjourney built its platform by exploiting copyrighted material, enabling subscribers to create high-quality, downloadable depictions of its characters “in every imaginable scene.” The lawsuit claims Midjourney knowingly disregarded copyright protections, pointing to the company’s prior restriction on video generation from infringing images, a safeguard that was recently lifted and promoted as an upgrade.

“Midjourney has made a calculated and profit-driven decision to offer zero protection for copyright owners, even though it knows the breathtaking scope of its piracy,” the complaint states. Warner Bros is seeking damages, disgorgement of profits, and an injunction to stop further unauthorized use.

The action follows a similar case brought in June by Walt Disney and Comcast’s Universal, which accused Midjourney of misusing characters including Darth Vader, Shrek, Bart Simpson, and Ariel from The Little Mermaid.

Founded in 2022 by David Holz, San Francisco-based Midjourney has grown rapidly, amassing nearly 21 million users and generating an estimated $300 million in revenue in 2024. The company has previously argued that training AI models on copyrighted works falls under “fair use,” allowing for the “free flow of ideas and information.”

Warner Bros, whose portfolio spans DC Comics, Hanna-Barbera, Cartoon Network, and Turner Entertainment, said protecting its intellectual property is vital to safeguarding its creative partnerships and investments. “The heart of what we do is develop stories and characters to entertain our audiences,” a company spokesperson said.

The case is Warner Bros Entertainment Inc et al v Midjourney Inc, U.S. District Court, Central District of California, No. 25-08376.

OpenAI to Debut First AI Chip in 2026 With Broadcom Partnership

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OpenAI will launch its first in-house artificial intelligence chip in 2026 through a partnership with U.S. semiconductor leader Broadcom (AVGO.O), according to the Financial Times. The chip will be used internally to power OpenAI’s own AI systems rather than being sold to external customers, people familiar with the matter said.

The move reflects OpenAI’s push to diversify away from Nvidia, whose GPUs currently dominate AI computing, and to lower infrastructure costs amid surging demand for training and running large-scale AI models like ChatGPT. OpenAI has previously collaborated with Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) on design and fabrication, while also supplementing with AMD and Nvidia chips.

Reuters earlier reported that OpenAI was finalizing the design of its first custom silicon, to be manufactured at TSMC, with a focus on reducing reliance on outside suppliers. By developing its own chip, OpenAI joins rivals Google, Amazon, and Meta, which have already rolled out proprietary processors to handle escalating AI workloads.

The timing of the news coincides with Broadcom CEO Hock Tan’s announcement on Thursday that the company had secured over $10 billion in AI infrastructure orders from a new unnamed customer, set to drive significant revenue growth in fiscal 2026. Industry watchers say OpenAI could be that customer, given its scale and need for dedicated compute.

If successful, the partnership would not only help OpenAI gain greater control over its AI infrastructure but also cement Broadcom’s position as a leading custom silicon provider in the generative AI era.

Manufacturers Turn to AI to Manage Supply Chains Amid Tariff Volatility

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U.S. manufacturers like The Toro Company are using artificial intelligence to maintain lean “just-in-time” inventories despite ongoing global trade uncertainties and fluctuating tariffs. Toro’s supply chain chief, Kevin Carpenter, says AI helps the company process daily news—from policy updates to commodity prices—into actionable insights, guiding purchasing and inventory decisions.

Generative AI is being increasingly adopted in supply chains, capable of analyzing massive datasets and suggesting optimal actions. Industry research firm Gartner predicts AI software spending for supply chains could rise from $2.7 billion today to $55 billion by 2029. Leading providers include SAP, Oracle, Coupa, Microsoft, and Blue Yonder.

While AI improves efficiency and helps manage cost pressures, experts caution it is not a “silver bullet.” Human oversight remains essential for strategic decisions, with AI handling routine tasks like scheduling and ordering. Companies using AI can better react to uncertainty, reduce excess inventory, and protect profit margins amid rising costs and global disruptions.