OpenAI shuts down AI video-generation app Sora, cancels $1 billion Disney deal

OpenAI shuts down AI video-generation app Sora, cancels $1 billion Disney deal

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OpenAI shuts down Sora cancels Disney deal shifts focus to robotics AGI amid backlash over AI creativity concerns

Share Facebook Twitter LinkedIn Pinterest Email OpenAI has shut down Sora, its artificial intelligence video-generation app, in less than two years after its launch. The ChatGPT-maker also revealed it will wind down its $1 billion partnership with Disney. OpenAI told the BBC on Sunday that it has discontinued Sora so that it can focus on other developments such as robotics “that will help people solve real-world, physical tasks.” A spokesperson for The Walt Disney Company said “we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere.” A Disney spokesperson said the company will engage with other AI platforms to find ways to responsibly use the technology without infringing on intellectual property rights. According to a Reuters report, this move is part of efforts by OpenAI to focus its business on potentially more lucrative areas such as ​coding tools and corporate customers. READ: OpenAI joins AI ‘superapp’ race: What it means for ChatGPT users (March 20, 2026) The deal between OpenAI and Disney was announced three months ago. As part of the three-year deal, Disney said it would ​invest $1 billion in OpenAI and lend more than 200 of its iconic characters to be used in short, AI-generated videos. However, no transaction took place between the companies, and no money changed hands, according to people familiar with the matter. The OpenAI-Disney deal saw significant backlash from creative industries, over copyright issues and...

Originally published on March 26, 2026. Curated by AI News.

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