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.

Disney and Universal filed a joint copyright infringement suit Wednesday against Midjourney, one of the most widely used generative AI image platforms. The complaint, filed in California, alleges that Midjourney knowingly trained its AI models on copyrighted film stills and character images without permission.