OpenAI has discontinued its Sora video-generation app less than two years after its high-profile launch, which had showcased highly realistic clips created from simple text prompts and attracted worldwide attention for its technical quality. Alongside shutting down Sora, the company is also cancelling a planned three-year, 1 billion dollar content partnership with Disney that would have allowed users to create AI videos featuring iconic characters such as Mickey Mouse and Yoda, a deal once seen as a turning point in Hollywood’s relationship with generative AI. OpenAI now intends to redirect resources toward other advanced systems, including robotics and so-called “agentic” technology capable of autonomously completing real-world tasks, while image-generation tools in ChatGPT remain unaffected.
Sora struggled to become a viable business despite the initial hype, generating only 1.4 million dollars in global net in-app revenue compared with 1.9 billion dollars for ChatGPT over a similar period, leading analysts to describe it as a “resource black hole” with “limited monetisation.” The platform also faced serious concerns over its inability to reliably prevent non-consensual imagery, realistic misinformation, and significant copyright infringement, all of which increased regulatory and reputational risk at a time when OpenAI remains unprofitable and investor pressure is mounting. Experts suggest that closing Sora and ending the Disney deal now may help minimise legal and financial exposure ahead of a possible stock market listing.
Disney, which had been the first major studio to license its intellectual property to OpenAI, indicated respect for the decision and signalled plans to work with other AI providers to ensure responsible use of its content. Meanwhile, Sora’s position had been weakened by a growing field of rival AI video tools, including China’s Seedance, whose highly realistic outputs have already stirred controversy online. Overall, Sora’s shutdown reflects broader tensions between rapid AI innovation, sustainable monetisation, and the protection of creative industries.
Reference
Chia, O., & Calder, E. (2026, March 24). OpenAI closes Sora video-making app and cancels $1bn Disney deal. BBC News. https://www.bbc.com/news/articles/c3w3e467ewqo