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.

According to Disney and Universal’s lawsuit, Midjourney made $300 million last year. The AI company boasts the world’s largest Discord server at more than 21 million members (Viggle.ai is in second place with around 4.