OpenAI Pulls the Plug on Sora as Disney Walks Away

March 25, 2026
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OpenAI will shut down its Sora AI video app just months after launch, telling users it will share timelines for the app and API and explain how creators can preserve their work. The move also unwinds a major Hollywood tie-up. A source familiar with the matter says Disney is exiting its deal with OpenAI, a pact announced last year that included a planned $1 billion investment and licensing of Disney characters for Sora, with an eye toward eventual Disney+ integration. Sora’s debut last fall stunned the industry, then prompted a quick reset to give studios and talent more control over IP and likenesses. OpenAI says it will keep working on AI video within other products.

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