OpenAI to Shut Down Sora Video App, Derailing $1 Billion Deal with Disney

OpenAI said Tuesday that it will shut down Sora, its AI video-generation platform, discontinuing an app that allowed users to create short videos from text prompts.

The decision ends the company’s standalone generative video product and appears to disrupt a planned entertainment partnership tied to the technology.

“We’re saying goodbye to the Sora app,” the Sora team posted on X. “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.”

OpenAI said it will share more information soon, including timelines for shutting down the app and its API and details on how users can preserve their work.

The fallout from OpenAI’s announcement has been swift.

A proposed $1 billion investment from Disney connected to Sora is no longer moving forward after OpenAI announced it would shut down the app, according to a report by Deadline.

OpenAI first introduced Sora in February 2024 as a text‑to‑video model that could turn written prompts into short clips.

The company later expanded the technology with Sora 2, a more advanced model released alongside a standalone Sora mobile app.

While OpenAI’s entry into video generation was highly anticipated, it became a consistent money drain for the company, reportedly costing about $15 million per day.

The Sora iOS app introduced a social-style video feed where users could generate and share AI-created clips.

It also included “cameos,” a feature that allowed users to insert themselves into AI-generated scenes after recording a short video to capture their likeness and voice.

Sora quickly drew scrutiny as it became widely available.

Legal experts warned the system could recreate recognizable characters and copyrighted franchises, raising intellectual property concerns.

Researchers also warned that Sora could be used to spread misinformation, noting that the system produced realistic-looking news footage depicting events that never happened, including of OpenAI CEO Sam Altman wearing a cat suit.

Critics also argued that tools like Sora, designed to generate and distribute low-quality synthetic media, also known as AI slop, could flood the internet.

In December, OpenAI and Disney announced a three-year agreement that would have allowed the company to license roughly 250 Disney characters from franchises including Frozen, Star Wars, and Marvel for use in AI-generated videos.

“This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences,” Altman said in a statement at the time.

Disney said it respects OpenAI’s decision to exit the video-generation business and will continue exploring other ways to work with generative AI.

“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 reportedly said.

OpenAI did not immediately respond to Decrypt’s request for comment.