OpenAI ends Disney partnership as it closes Sora video-making app

The move comes less two years after the launch of the AI video app sent shockwaves through the media industry.

OpenAI has announced it will discontinue its Sora video app as part of a strategic shift to concentrate on its core priorities: capital, computing resources, and enterprise-focused products. This decision comes in response to mounting competition from other AI firms such as Anthropic and Google. Despite its initial success and a notable partnership with Disney involving over 200 licensed characters and a $1 billion investment, Sora consumed a significant amount of computational resources. OpenAI is redirecting its efforts toward world simulation research to enhance robotics capabilities for real-world applications. The company shared the update in a staff meeting, signaling a notable pivot in its approach to experimental projects.

OpenAI announced the shutdown of its AI video generation app, Sora, which had gained widespread attention since its launch in September 2025 for enabling users to create and share short-form AI-generated videos. Despite its popularity, Sora sparked significant controversy due to its potential for misuse, including the creation of realistic deepfakes and nonconsensual content. Advocacy groups, scholars, and industry experts raised alarms about the platform's ethical implications and the ease of generating potentially harmful content through text prompts. OpenAI responded to backlash by restricting the creation of AI depictions of public figures such as Michael Jackson and Martin Luther King Jr., following protests from families and entertainment unions. Disney, a collaborator that had allowed its characters to appear on the app, voiced support for OpenAI’s decision to withdraw from the AI video space, emphasizing the importance of respecting intellectual property and creator rights. OpenAI expressed appreciation for its user base, promising to share further details on how existing content could be preserved. The company stated it would redirect its focus, indicating a shift in its priorities in response to growing concerns about AI-generated media.

OpenAI has announced the discontinuation of its Sora video generation app, less than six months after launching Sora 2, which had raised concerns within the entertainment industry over potential copyright violations. Despite Sora’s popularity and creative community, OpenAI stated it is ending both the app and its developer version, and will also remove video functionality in ChatGPT. The decision is part of a strategic shift toward productivity tools, such as a new desktop “superapp” integrating ChatGPT, Codex, and the Atlas browser. Sora attracted controversy for enabling users to create videos that featured copyrighted content without permission. This led to warnings and demands from Japanese studios, and ultimately played a role in disrupting a planned $1 billion investment and licensing agreement with Disney. Disney has now pulled out of the deal, citing OpenAI’s exit from video generation. The company emphasized continued interest in collaborating with AI platforms that respect intellectual property and creators' rights.

OpenAI has abruptly shut down its generative video app, Sora, less than 18 months after its debut and under a year since launching the Sora mobile app. The closure comes amid reports that Disney has withdrawn from a $1 billion investment deal, which would have granted OpenAI limited access to Disney characters for AI video use. The announcement, delivered via a post on X (formerly Twitter), thanked the Sora community and promised forthcoming details on preserving user-generated content. While the exact reasons for the shutdown remain unclear, speculation points to financial challenges in scaling a video platform and possible repercussions from Disney’s new leadership under CEO Josh D'Amaro, who may have disagreed with the previous arrangement. Disney acknowledged OpenAI's decision and expressed interest in pursuing other AI partnerships. Despite Sora ranking #11 in Photo and Video on Apple’s App Store, the platform struggled to gain widespread adoption and faced criticism over low-quality AI content flooding other platforms like TikTok. Its closure raises questions about the stability of the AI video market and may signal a small correction within the broader AI boom, though it's seen as part of the typical evolution in a fast-growing industry.