- OpenAI shuts down Sora
- It’s not clear why, but people will somehow be able to save the videos they’ve created in the app and elsewhere
- Disney may have also walked away from its big OpenAI deal
In a stunning turn of events, OpenAI has unexpectedly shut down the Sora app, and Disney may have walked away from its $1 billion deal to support the generative video technology.
Less than 18 months after launching Sora to widespread shock and acclaim, and less than a year after launching the Sora app, OpenAI announced in an X post on Tuesday, “We’re saying goodbye to Sora.”
We say goodbye to Sora. To everyone who has created with Sora, shared it, and built a community around it: thank you. What you did with Sora meant something, and we know this news is disappointing. We’ll be sharing more soon, including app and API timelines and details on…March 24, 2026
The post thanks the Sora community (which mostly lived on as a short-lived popular social generative video sharing app) and admits the news is “disappointing”. Perhaps more importantly, they promise to share details about how the Sora community can save 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 pulled out of the $1 billion investment and deal that would have brought iconic Disney characters to the Sora platform. One of Sora’s key features was the ability to use, with permission, AI characters based on real Sora users (this included OpenAI CEO Sam Altman) simply by including their usernames in the prompt. I’ve done quite a few with Altman and me, and also a bunch with me (see below).
It is unclear what prompted this decision. Altman has yet to comment on it. 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 due to all the “AI slop” coming out of Sora and being dumped on other social platforms like TikTok.
I made about 20 Sora videos over the past six months, which isn’t a lot 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 could integrate the tools into their traditional content creation pipelines.
One has to assume that was the big play with Disney, who planned to let OpenAI use some of its characters, but surely expected more out of OpenAI for its own content and massive intellectual property pipeline.
Analysis: Why does Sora die?
Did OpenAI see the massive resource drain created by a widespread generative video platform and eventually stop? Or did Disney pull out and OpenAI realized it could no longer fund Sora?
It’s possible that this reported demise of the Disney/OpenAI deal was an initial decision by new Disney CEO Josh D’Amaro, who took over on March 18. After all, Bob Iger 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 the competition to consider. Sora’s abilities seem somewhat less than special after ByteDance’s Seedance 2.0 arrived and people were suddenly making shockingly realistic clips of famous stars (all without permission).
Sora did not create a company. It was like an early settler overrun by a metropolis with better opportunities.
Still, Sora’s breakdown makes one wonder if this is the first chip in the dam. Has the massive wall of unbridled AI confidence popped? Will it grow and lead to some kind of collapse? Unlikely. Mini bubble pops are to be expected as this fast paced industry continues to grow and adapt. Not every startup or vertical can be a winner.
Many will lose and disappear.
As for Sora, it was weird and fun. I made some silly and eye-opening short videos on the wider platform (available on the web) and the app. I wish I’d experimented more, but I’m sure I’ll have more chances with the next big AI video thing.
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