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.

The suit, against Midjourney, is the first time major Hollywood companies have sued over A.I.-generated images.