- OpenAI is closing Sora
- It’s not clear why, but people will somehow be able to save the videos they created in the app and elsewhere.
- Disney may also have abandoned its big deal with OpenAI
In a surprising turn of events, OpenAI unexpectedly shut down the Sora app, and Disney may have abandoned its billion-dollar deal in support of generative video technology.
Less than 18 months after Sora launched to much surprise and acclaim and less than a year after the Sora app launched, OpenAI announced in an X post on Tuesday: “We’re saying goodbye to Sora.”
We say goodbye to Sora. To everyone who created with Sora, shared it, and built a community around it: thank you. What you did with Sora was important and we know this news is disappointing. We’ll share more soon, including app and API timelines and details about…March 24, 2026
The publication thanks the Sora community (which survived as a briefly popular generative social video-sharing app) and admits the news is “disappointing.” Perhaps most importantly, they promise to share details on how the Sora community can save their generative AI video work.
Article continues below.
Separately or perhaps what triggered this decision (or vice versa), The Hollywood Reporter claims that Disney backed out of the $1 billion investment and deal, which would have brought iconic Disney characters to the Sora platform. One of the main features of Sora was the ability to use, with permission, AI characters based on real Sora users (this included OpenAI CEO Sam Altman), simply by including their usernames in the message. I created quite a few with Altman and myself, and also a bunch with just me (see below).
It is unclear what precipitated this decision. Altman has yet to comment on the matter. In the Apple App Store, the Sora app is still #11 for photography and video and it still works on my iPhone. But the concept of an AI-generated social video platform has not gained much acceptance. In fact, there has been some backlash due to all the “AI creep” coming out of Sora and pouring into other social platforms like TikTok.
I’ve made about 20 Sora videos in the last six months, which isn’t much considering how often I post on social media. Still, the Sora app was essentially a showcase for OpenAI’s generative video models and a powerful tool designed to attract video professionals who could integrate the tools into their traditional content creation processes.
You have to assume that was the big move with Disney, which was planning to let OpenAI use some of its characters, but surely expected more from OpenAI for its own content and huge intellectual property portfolio.
Analysis: Why is Sora dying?
Did OpenAI see the huge resource drain created by a widely used generative video platform and ultimately balk? Or did Disney pull out and OpenAI realize it could no longer fund Sora?
It is possible that this supposed disappearance of the agreement between Disney and OpenAI was a first decision of the new CEO of Disney, Josh D’Amaro, who took office on March 18. After all, Bob Iger made the deal. Perhaps D’Amaro didn’t like the deal, OpenAI’s access to Disney characters, or thought he could get a better, more lucrative deal elsewhere.
A Disney spokesperson shared this statement following OpenAI’s announcement: “As the nascent field of AI advances rapidly, we respect OpenAI’s decision to exit the video generation business and 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 adopting new technologies that respect intellectual property and creators’ rights.”
While it appears that OpenAI blinked first, it’s still unclear what happened behind the scenes, especially without a more detailed statement from Sam Altman and OpenAI.
You also have to consider the competition. Sora’s abilities seem somewhat less than special after ByteDance’s Seedance 2.0 arrived, and suddenly people were creating strikingly realistic clips featuring well-known stars (all without permission).
Sora didn’t create a business. It was as if the first settlers were invaded by a metropolis of better options.
Still, Sora’s collapse makes one wonder if this is the first fragment of the dam. Has there been a leak in the huge wall of unlimited trust in AI? Will it grow and lead to some kind of collapse? Unlikely. Expect small bubbles to burst as this fast-moving industry continues to grow and adjust. Not every startup or vertical can be a winner.
Many will lose and disappear.
As for Sora, well, it was weird and fun. I created some silly and insightful short videos on the broader platform (available on the web) and app. I wish I had experimented more, but I’m sure I’ll get more opportunities with the next big AI video.
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