OpenAI Shuts Down Sora and Ends Disney Partnership

Post date: 26 March 2026

Reading time 2 minutes

Written by Shikhar Y. Dobhal

26 March 2026

2 minutes · By Shikhar Y. Dobhal

OpenAI has shut down its AI video-generation tool Sora, less than two years after it gained global attention for producing realistic videos from simple prompts. In a post on Sora's X handle, the company confirmed that it is discontinuing both the consumer app and the web-based platform. OpenAI said the decision was made to shift focus toward other areas of development, including robotics and autonomous AI systems. This moves comes rather abruptly, and just a day after they posted a blog on their website titled "Creating with Sora safely".

Disney Partnership Also Ends

At the same time, OpenAI is also winding down its reported $1 billion content partnership with The Walt Disney Company. Responding to the decision, a Disney spokesperson said, “we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere”. The company added that it will continue exploring AI partnerships “to responsibly use the technology without infringing on intellectual property rights.”

What Went Wrong for Sora?

Despite strong interest after its 2024 launch, Sora struggled to generate meaningful revenue. Reports suggest the platform earned around $1.4 million, compared to $1.9 billion for ChatGPT over the same period. Analysts pointed to both financial and ethical challenges while Forrester analyst Thomas Husson described Sora as a “resource black hole” with “limited monetisation.”

OpenAI said it will now prioritize technologies “that will help people solve real-world, physical tasks.”

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