OpenAI has announced it is closing Sora, its AI video generation service, in a surprise move that directly affects Disney's recently announced partnership with the platform.
"We're saying goodbye to Sora," the company posted on X. "We'll share more soon, including timelines for the app and API and details on preserving your work."
OpenAI has not given a specific shutdown date. The company says it will release details on timelines for both the app and API, along with information on how users can preserve their existing work.
What This Means for Disney
The Sora closure appears to be taking Disney's entire OpenAI agreement down with it. According to a source familiar with the matter cited by The Hollywood Reporter, Disney is also walking away from the broader deal it signed with OpenAI last year - including the planned $1 billion equity investment and the character licensing agreement.
Announced in December 2025, the deal had given users access to short AI-generated videos featuring more than 200 Disney, Pixar, Marvel, and Star Wars characters through Sora. Disney had also committed to becoming a major OpenAI customer, using its APIs to build new products and experiences including features for Disney+.
Disney said in a statement: "As the nascent AI field advances rapidly, we respect OpenAI's decision to exit the video generation business and to 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 embracing new technologies that respect IP and the rights of creators."
The statement stops short of confirming the full exit, but the language points to the partnership being over. Disney had planned to begin offering Sora-generated fan content featuring its characters in early 2026.
Why Is OpenAI Closing Sora?
OpenAI has not given a detailed explanation, but recent comments from company executives point to a broader strategic refocus. The company has acknowledged it cannot do everything at once, and the shutdown comes ahead of an anticipated IPO. OpenAI recently raised $110 billion in new funding, bringing its total valuation to around $730 billion.
Sora launched publicly in 2024 and quickly drew attention from the entertainment industry. When Sora 2 launched in October, the app reached the top of the iOS App Store's Photo and Video category within a day. The service also attracted significant scrutiny from copyright and deepfake experts over videos featuring characters like Mario, Pikachu, and Lara Croft.
What Happens Next
OpenAI says more information is coming, including shutdown timelines and options for preserving user-created content. There's no word yet on whether any replacement product is planned.
Disney says it will continue looking at other AI platforms. Whether that leads to a similar deal elsewhere remains to be seen.
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