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.

Disney and NBCU filed the federal suit Tuesday against Midjourney, a generative AI start-up, alleging copyright infringement. The companies alleged that Midjourney’s own website “displays hundreds, if not thousands, of images generated by its Image Service at the request of its subscribers that infringe Plaintiffs’ Copyrighted Works.”

The Walt Disney Co. and NBCUniversal sued AI company Midjourney on Wednesday, alleging that its image-generating service “functions as a virtual vending machine” that generates “endless unauthorized copies” of copyrighted works.