OpenAI Kills Sora and Loses Disney’s $1B Investment
In September, OpenAI launched the newest version of its generative AI video model, Sora 2, to significant initial fanfare and equally big copyright concerns. Today, just months later, OpenAI killed Sora.
Although OpenAI only mentioned the end of the standalone Sora app on social media, The Wall Street Journal reports that this is a full-scale plug-pulling for Sora at large.
We’re saying goodbye to the Sora app. To everyone who created with Sora, shared it, and built community around it: thank you. What you made with Sora mattered, and we know this news is disappointing.
We’ll share more soon, including timelines for the app and API and details on…
— Sora (@soraofficialapp) March 24, 2026
“The move is one of a number of steps OpenAI is taking to refocus on business and coding functions ahead of a potential initial public offering as soon as the fourth quarter of this year,” WSJ writes.
OpenAI CEO Sam Altman reportedly told OpenAI staff today that the company is shutting down products that use its generative video models, including the Sora app, and will not support video functionality inside the company’s widely used ChatGPT platform.
WSJ reports that “some OpenAI” employees found it surprising how many resources OpenAI had dedicated to the Sora project and associated app, especially given a perceived lack of broader market demand for something like Sora.
However, just a few months after launching Sora, Disney agreed to invest $1 billion in OpenAI. As part of this agreement, OpenAI would license many popular Disney characters for use in its generative AI apps, like Sora.
With OpenAI killing Sora today, that deal is off. Per The Hollywood Reporter, Disney is no longer planning to invest in OpenAI.
“As the nascent AI field advances rapidly, we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere. We appreciate the constructive collaboration between our teams and what we learned from it, and we will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators,” a Disney spokesperson said.
The generative AI landscape is rapidly changing, and OpenAI has been particularly busy in the space, regularly releasing new products across diverse categories. Per a different WSJ report last week, OpenAI’s CEO of applications, Fidji Simo, said the company must stop being distracted by “side quests” and focus its efforts on core services, including productivity and enterprise-centered applications.
Sora, an apparent side quest, is no more. It remains to be seen which of OpenAI’s other ventures, like its AI web browser, image generator, and ambitious hardware plans, survive the company’s strategy shift.
Image credits: OpenAI. Header photo created using an asset licensed via Depositphotos.com.
