OpenAI announced it will shut down its Sora AI video app just months after launch, prompting Disney to exit a $1 billion investment deal the companies signed in December 2025. The Hollywood Reporter first reported the shutdown and Disney’s departure from the partnership.
“We’re saying goodbye to Sora. To everyone who created with Sora, shared it, and built community around it: thank you,” OpenAI said in a statement. “What you made with Sora mattered, and we know this news is disappointing. We’ll share more soon, including timelines for the app and API and details on preserving your work.”
The Sora app launched last fall and initially allowed free use of established intellectual property and known actors, shocking Hollywood studios. OpenAI had to backtrack within days of launch, giving studios and talent more control over their IP and likenesses on the platform after industry pushback.
Disney’s December 2025 deal involved a $1 billion investment in OpenAI in exchange for licensing some Disney characters for use in Sora, with plans to integrate the technology into Disney+ itself. The partnership aimed to leverage AI video generation for Disney’s streaming platform.
“As the nascent AI field advances rapidly, we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere,” a Disney spokesperson said. “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.”
OpenAI CEO Sam Altman’s company remains in the AI video business through tools available in the ChatGPT app, but the standalone Sora application will be discontinued. The shutdown leaves Google as essentially the only major player with scale in AI video generation, though it has not signed deals with IP holders and faces ongoing lawsuits from some content creators.
