Midjourney users can create AI images of protected characters like Shrek, Yoda and Marvel superheroes, according to a new lawsuit.

Disney and Universal are suing AI photo generation company Midjourney, marking the first major legal showdown between Hollywood studios and an artificial intelligence company.

Walt Disney and Comcast's Universal filed a copyright lawsuit against Midjourney on Wednesday, calling its popular AI-powered image generator a "bottomless pit of plagiarism" for its use of the studios' best-known characters.