Commentary: The Disney/Sora fiasco shows the limits of the AI craze
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Disney and OpenAI thought their billion-dollar deal would underscore the importance of AI for Hollywood's future. Its ignominious collapse proves just the opposite
Former Disney CEO Bob Iger thought his deal with OpenAI would be lasting, but it collapsed in less than four months. (Charley Gallay / Getty Images for Disney) By Michael Hiltzik Business Columnist Follow March 30, 2026 6:58 PM PT 1 9 min Click here to listen to this article Share via Close extra sharing options Email Facebook X LinkedIn Threads Reddit WhatsApp Copy Link URL Copied! Print 0:00 0:00 1x This is read by an automated voice. Please report any issues or inconsistencies here. Disney and OpenAI thought their billion-dollar deal would underscore the importance of AI for Hollywood’s future. Its ignominious collapse proves just the opposite. It was supposed to be Bob Iger’s legacy.On Dec. 11, Iger, the departing Disney chief executive, joined OpenAI CEO Sam Altman to announce what they labeled a “landmark” deal allowing users of OpenAI’s text-to-video platform to generate videos featuring “beloved” Disney characters, including even Mickey Mouse. Iger and Altman embarked on a virtual PR tour, appearing on CNBC to praise each other’s sagacity in grasping this new technology ahead of their rivals in Hollywood and Silicon Valley. The deal encompassed a $1-billion investment by Disney in OpenAI. We want to participate in what Sam is creating. — Then-Disney CEO Bob Iger, praising OpenAI Sam Altman in December, when they announced a partnership deal Advertisement “We want to participate in what Sam is creating,” Iger said on CNBC, with Altman, occupying an adjacent on-scree...
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