OpenAI shuts down Sora video app, ending Disney’s $1 billion partnership plans

OpenAI has pulled the plug on Sora. The company discontinued its AI video-generation app and the related API as of March 24, 2026. The move also ends one of the splashiest media partnerships of the AI era. Disney had been set to invest $1 billion in OpenAI and license its characters to the platform. That deal was announced only three months earlier. What OpenAI walked away from The Disney agreement was announced on December 11, 2025. It had two main pieces. First, Disney was to put $1 billion into OpenAI. Second, Disney would license more than 200 characters from its library for use in Sora-generated videos. The money never arrived. No funds changed hands before OpenAI decided to shut the app down. OpenAI framed the shutdown as a strategic pivot. The company is redirecting resources toward research in world simulation and robotics, along with agentic AI and artificial general intelligence, or AGI. OpenAI pointed to high computing costs as a key reason for the decision. The company acknowledged that ending Sora was a hard call, but said it was necessary. Disney is not thrilled Disney’s response carried a noticeable edge. The company expressed surprise at the timing of the shutdown, ...