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

Midjourney users can create AI images of protected characters like Shrek, Yoda and Marvel superheroes, according to a new lawsuit.

Disney and Universal sue AI image company Midjourney for unlicensed use of 'Star Wars,' 'The Simpsons' and more Disney and Universal joined forces in a lawsuit against artificial intelligence image creator Midjourney, alleging copyright infringement. It is the first AI copyright lawsuit from Hollywood giants.