Disney Pulls Out of $1 Billion Sora AI Deal After Just 3 Months

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Sora, the AI app that creates videos, is closing down. The company behind it is also ending its partnership with OpenAI.

The Sora team announced on X that they are discontinuing the Sora AI video generator. They thanked everyone who used Sora, shared their creations, and helped build a community around it, acknowledging that the news will be upsetting. They plan to share more information soon, including details about the app and API, and how users can save their existing Sora creations.

Sora Is Shutting Down Just Months After Launching

According to reports, Disney is ending its partnership with OpenAI. Previously, in December 2025, the companies announced a three-year deal that would have allowed over 200 characters from Disney, Marvel, Pixar, and Star Wars to appear in AI-created videos using OpenAI’s Sora technology. As part of this agreement, Disney had planned to invest $1 billion in OpenAI.

Disney acknowledged OpenAI’s decision to stop making videos and focus on other areas. In a statement, Disney said they valued the positive working relationship between their teams and the lessons learned. They also stated they will continue exploring AI technologies to connect with fans in innovative ways, while ensuring the protection of intellectual property and respecting the rights of content creators.

Despite the recent changes, Disney could still partner with another AI company. They initially invested in OpenAI hoping to use the technology to enhance videos on Disney+. It’s likely Disney will seek a new agreement with a leading AI firm to pursue this vision.

Disney Might Sign a New AI Deal Elsewhere

According to Walt Disney Company CEO Robert A. Iger, technology has always changed how we experience entertainment and share stories. He stated that the latest advances in artificial intelligence are a significant development for the industry. Disney’s partnership with OpenAI will allow them to explore using AI to enhance their storytelling in a careful and ethical way, always prioritizing and safeguarding the rights of creators.

Iger explained that combining Disney’s storytelling with OpenAI’s technology will allow fans to experience Disney characters and stories in new, more immersive, and personalized ways, unlocking levels of imagination and creativity never before possible.

Although interest in Sora is fading quickly, OpenAI itself is here to stay. The decision to shut down Sora won’t impact ChatGPT, another popular app created by OpenAI. Sora, which launched last fall and initially promised to revolutionize entertainment, isn’t living up to expectations, but OpenAI continues to innovate and shows no signs of stopping.

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2026-03-25 00:36