- OpenAI shuts down Sora
- It’s unclear why, but people will somehow be able to save videos they’ve created in the app and elsewhere.
- Disney may also have ended its big OpenAI deal
In a stunning turn of events, OpenAI unexpectedly shut down the Sora app, and Disney may have walked away from its billion-dollar deal in favor of generative video technology.
Less than 18 months after the launch of Sora, which was widely shocked and acclaimed, and less than a year after the launch of the Sora application, OpenAI announced in an X article on Tuesday: “We say goodbye to Sora.”
We say goodbye to Sora. To everyone who created with Sora, shared it, and built a community around it: thank you. What you achieved with Sora was important, and we know this news is disappointing. We’ll share more soon, including app and API timelines and details on…March 24, 2026
The post thanks the Sora community (which primarily survived as a briefly popular generative video-sharing social app) and admits that the news is “disappointing.” Perhaps most importantly, they promise to share details on how the Sora community can back up their generative AI video work.
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Separately or perhaps what triggered this decision (or vice versa), The Hollywood Reporter claims that Disney has walked away from the billion-dollar investment and deal, which would have brought iconic Disney characters to the Sora platform. One of Sora’s main features was the ability to use, with permission, AI personas based on real Sora users (including OpenAI CEO Sam Altman) simply by including their usernames in the prompt. I created quite a few with Altman and me, as well as a number with me (see below).
It is unclear what precipitated this decision. Altman has not yet commented on this matter. In the Apple App Store, the Sora app is still #11 in photo and video and still works on my iPhone. But the concept of an AI-generated video social platform hasn’t really caught on. In fact, there has been some backlash because of all the “AI slop” coming from Sora and dumped on other social platforms like TikTok.
I’ve made about 20 Sora videos in the last six months, which isn’t much considering how often I post on social media. Still, the Sora app was essentially a showcase for OpenAI’s generative video models and a powerful tool designed to attract video professionals who might integrate the tools into their traditional content creation pipelines.
Presumably this was the big game with Disney, who planned to let OpenAI use some of its characters but surely expected more from OpenAI for its own content and huge intellectual property pipeline.
Analysis: Why is Sora dying?
Did OpenAI see the enormous resource created by a widely used generative video platform and finally hesitate? Or did Disney pull out and OpenAI realized it could no longer fund Sora?
It is possible that the announced end of the Disney/OpenAI agreement is an initial decision by new Disney CEO Josh D’Amaro, who took office on March 18. After all, it was Bob Iger who made the deal. Perhaps D’Amaro didn’t like the deal, OpenAI’s access to Disney characters, or thought he could get a better, more lucrative deal elsewhere.
There is also competition to consider. Sora’s abilities seem a little less than special after ByteDance’s Seedance 2.0 is here and people are suddenly creating incredibly realistic music videos featuring well-known stars (all without permission).
Sora didn’t start a business. It was like an early settler being invaded by a metropolis with better options.
Still, Sora’s collapse makes one wonder if this is the dam’s first burst. Has the huge wall of unfettered trust in AI caused a leak? Will it grow and lead to some sort of collapse? Unlikely. Mini-bubbles are to be expected as this rapidly evolving industry continues to grow and adapt. Not every startup or vertical can be a winner.
Many will lose and disappear.
As for Sora, well, that was weird and fun. I created short, silly, revealing videos on the wider platform (available on the web) and app. I would have liked to experiment more, but I’m sure I’ll have better luck with the next big AI video.
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