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 sued popular artificial intelligence image-generator Midjourney on Wednesday, marking the first time major Hollywood companies have taken legal action against a maker of generative AI technology that could upend the entertainment industry.