Sora shutdown cancels billion-dollar video deal with Disney

2026-03-25 - 10:00

OpenAI’s Sora gained internet popularity for its humorous and bizarre AI-generated content, sparking divided opinions due to its video generation capabilities and limited restrictions. However, the app is now shutting down, a move that has directly impacted a major deal between Disney and OpenAI. The studio had planned to invest $1 billion in OpenAI following a proposal made in December 2025. This investment would have allowed Disney’s characters to be featured in Sora. The deal aimed to generate videos featuring Disney creations, including Elsa, Darth Vader, and Mickey Mouse, with a chance for these clips to be available on Disney+. The original agreement was described as a way to develop “fan-inspired content utilizing Disney’s licensed characters” through the tool. However, the deal has been terminated following the company’s announcement to close its only video generation application. In a “disappointing update” following its 2025 launch, the company declared it is “saying goodbye to Sora.” Many celebrated the news, with one X user speculating that this might signify the near end of artificial intelligence amid fears of a robotic takeover of the world. Several critics suggested the company might be struggling financially and was unable to maintain the “poorly trained AI.”