OpenAI Abandons Sora Video App, $1 Billion Disney Deal

OpenAI's Sora video app has been shut down, marking the end of Disney's planned $1 billion investment and licensing deal. The move was announced on March 24, 2026, and comes just three months after the partnership was first revealed.

The partnership, which was set to be one of the largest in the AI era, would have seen Disney invest $1 billion into OpenAI and license over 200 of its characters for use in Sora-generated videos. However, no funds were exchanged before OpenAI decided to shut down the app.

OpenAI cited high computing costs as a reason for the shutdown, framing it as a strategic pivot towards research in world simulation and robotics, agentic AI, and artificial general intelligence (AGI). The company acknowledged that ending Sora was a difficult decision but said it was necessary to focus on its core research goals.

Disney responded with surprise and disappointment, describing the shutdown as a 'rug-pull' and stating that they would now explore other AI options and partnerships. OpenAI's decision has raised questions about the company's priorities and the risk of reputational damage from abandoning consumer products without warning.