Disney pulls out of OpenAI partnership after Sora app and API gets killed just months after launch

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline": "Disney pulls out of OpenAI partnership after Sora app and API gets killed just months after launch", "datePublished": "2026-03-25T11:52:09+01:00", "dateModified": "2026-03-25T11:53:43+01:00", "author": { "@type": "Person", "name": "Matthias Bastian" }, "publisher": { "@type": "Organization", "name": "The Decoder" }, "description": "OpenAI is shutting down its Sora app and API. Disney is now walking away from the billion-dollar deal the two companies signed just last December.", "articleBody": "OpenAI is shutting down its Sora app and API. In response, Disney is pulling out of the partnership the two companies signed just last December.\r\n\r\nOpenAI has announced that it's discontinuing its Sora AI video app. \"We are saying goodbye to the Sora app. To everyone who created with Sora, shared it, and built a community around it: thank you,\" the Sora team wrote. The company says it will share more details soon, including timelines for the app and API shutdown, along with instructions for backing up any work users created.\r\n\r\nIt's still unclear what this means for OpenAI's broader video AI plans. The company initially posted a farewell to \"Sora\" entirely, then edited the wording to \"Sora app.\" That distinction suggests the underlying Sora video model isn't completely dead.\r\n\r\n[caption id=\"attachment_33598\" align=\"alignnone\" width=\"593\"] The original post said goodbye to \"Sora\" entirely\u2026[\/caption]\r\n\r\n[caption id=\"attachment_33599\" align=\"alignnone\" width=\"595\"] \u2026 then OpenAI changed it to \"Sora App.\" | Image: Screenshot THE DECODER[\/caption]\r\n\r\nRecently, there have been rumors that\u00a0Sora will be integrated into ChatGPT as a video feature, as part of a planned\u00a0\"super app.\"\u00a0According to the\u00a0Hollywood Reporter, that's still the plan.\u00a0The Information, however, reports that the idea has been shelved.\r\nDisney walks away from a billion-dollar OpenAI deal\r\nThe fallout was immediate:\u00a0Disney is pulling out of the deal it signed with OpenAI in December. Disney had agreed to invest one billion dollars in OpenAI and license some of its characters for use in Sora. The goal was to integrate the technology into Disney+.\r\n\r\n\"As the nascent AI field advances rapidly, we respect OpenAI\u2019s decision to exit the video generation business and to shift its priorities elsewhere,\" a Disney spokesperson told the Hollywood Reporter, adding that Disney wants to continue working with AI platforms to \"find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators.\"\r\nSora's turbulent history ends as a footnote\r\nThe Sora app only launched in fall 2025 and immediately rattled Hollywood. The platform allowed free use of established intellectual property and well-known actors' likenesses, forcing OpenAI to backpedal within days. Studios and talent eventually got more control over their rights and likenesses on the platform.\r\n\r\nOpenAI likely had several reasons for pulling the plug on Sora. The app completely tanked in the app charts after a viral launch. OpenAI CEO Sam Altman said at launch that the app would be discontinued if it didn't satisfy users. That lack of traction was probably the deciding factor\u2014OpenAI wouldn't be killing it if it were growing fast.\r\n\r\nBut other factors likely played a role too. OpenAI has been shifting its strategy toward B2B lately, where rival Anthropic has been gaining ground. Video models in particular burn through massive compute resources that could be redirected toward research, development, and more profitable enterprise products.\r\n\r\nOpenAI CFO Sarah Friar framed the decision as a resource problem. \"We just are facing a lack of compute,\" Friar told CNBC. \"We're having to make those really difficult decisions. Often we hold back models, we don't release features. And this was an example of having to prioritize.\" She added that the move doesn't mean OpenAI is done with creative tools for good: \"It's not a 'never.' It's just a, 'We have to make hard choices.'\"\r\n\r\nLegal pressure added to the mix. OpenAI faced early pressure over copyright issues, the technical challenges of content moderation, and fierce competition from Chinese video models that were already outperforming Sora at lower prices. Chinese providers also largely sidestep Western copyright rules. Google, meanwhile, has made strong progress in video with its Veo models and leads in image generation thanks to Nano Banana. OpenAI would have had to invest heavily just to keep up.\r\nWhat happens to Sora's world model research\r\nThe big remaining question is what happens to the research thesis behind Sora. When OpenAI first unveiled the model in spring 2024, it described Sora as a \"world simulator\" that could help train advanced AI\u2014a key step toward artificial general intelligence.\r\n\r\nOf course, OpenAI can keep pursuing this research without the pressure of turning the video model into a commercial product. But\u00a0OpenAI's own track record shows a direct link between research depth and product success.\r\n\r\nAccording to an internal memo seen by\u00a0The Information, the Sora research team will now focus entirely on long-term world model research (\"systems that deeply understand the world by learning to simulate arbitrary environments at high fidelity\"), with the goal of \"automating the physical economy.\"", "isAccessibleForFree": "False", "hasPart": { "@type": "WebPageElement", "isAccessibleForFree": "False", "cssSelector": ".paywall-active" } }