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

Disney and Universal just sued Midjourney for scraping their IP—ushering in a major showdown over how AI is trained.

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.