OpenAI Drops Disney Collaboration, Shuts Down Sora Video-Making Software
Posted On: 3/26/2026, 12:45:59 PM
Last Update: 3/26/2026, 12:45:59 PM
OpenAI has discontinued its AI video-generation app Sora, just under two years after its launch, which gained attention for producing realistic clips from simple prompts.
Plus, OpenAI will end its content partnership with Disney and discontinue Sora to focus on other initiatives, particularly in robotics for real-world physical tasks.
The Walt Disney Company expressed respect for OpenAI's decision to exit the video generation sector and refocus its priorities.
OpenAI Retires Sora to Focus on Agentic AI
Disney aims to collaborate with other AI platforms to explore responsible technology use while respecting intellectual property rights, according to a spokesperson.
Moreover, OpenAI is shutting down its Sora consumer app and the internet-based platform used by professionals to generate videos, indicating a shift away from developing video-generation tools.
The company stated that it wants to develop more sophisticated AI, such as "agentic" technology that can perform activities on its own with minimal human supervision.
Likewise, OpenAI intends to train robots using the same technology that teaches AI how to create lifelike videos.
OpenAI stated that Sora's closing has not impacted ChatGPT's image-making tools.
Sora's Rise & IP Deals Shake Up AI Video
Due to the excellent quality of its AI-generated videos, which appeared to have been made by a professional studio, Sora launched in 2024 to great attention worldwide.
However, the software also raised questions about copyright infringement and the danger it presented to the media sector.
Disney was the first big studio to grant OpenAI a licence to use its intellectual property (IP) in its AI video tools in December.
Mickey Mouse and Yoda from Star Wars were among the Disney characters that Sora users could make AI films with under the three-year agreement.
After big studios had filed lawsuits against AI companies for using their intellectual property, the deal was viewed as a watershed moment for both Hollywood and the tech sector.
Further, concerns that the partnership would be a significant step toward AI replacing talent in the entertainment business were also voiced by some in the media sector.
In the market for AI videos, Sora also had to contend with an increasing number of rivals. China's Seedance, which caused controversy in February after realistic footage of Hollywood figures created with the app went viral online, is on that list.
A Complicated Procedure
This is the first significant effort by the company that created ChatGPT to concentrate its operations on potentially more profitable markets, like corporate clients and coding tools.
However, as OpenAI gets ready for a potential stock market debut later this year, the sudden cancellation of Sora shows how disorganised the streamlining process may be.
A blockbuster $1 billion transaction between Disney and the ChatGPT manufacturer, which was announced a little over three months ago, is ending as a result of the Sora ruling. Disney announced that it would donate more than 200 of its well-known characters to be used in brief AI-generated videos and invest $1 billion in OpenAI as part of the three-year agreement.
Nevertheless, no money was exchanged, and the deal between the corporations was never finalised, according to two other persons with knowledge of the situation.
