OpenAI to Shut Down Sora Video App, Derailing $1 Billion Deal with Disney
OpenAI will shut down Sora, its AI video-generation platform that enabled users to create short videos from text prompts. The closure ends OpenAI’s standalone generative video product and halts a planned entertainment partnership with Disney, which has withdrawn a proposed $1 billion investment. Launched in February 2024, Sora offered advanced AI-generated video features and a mobile app, but incurred high operational costs—reportedly $15 million daily. Sora faced legal scrutiny over potential copyright violations and concerns it could spread misinformation or flood the internet with “AI slop.” An agreement with Disney to license characters for use in AI videos has been canceled. OpenAI will provide further details on shutdown timelines and user data retrieval. Disney expressed respect for OpenAI’s decision and intends to continue exploring generative AI opportunities.
