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 are the first major Hollywood studios to file copyright infringement lawsuits against AI companies, marking a pivotal moment in the ongoing fight by artists, newspapers and content makers to stop AI firms from using their work as training data.