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OpenAI Is Shutting Down Sora
Logo courtesy of Sora // Illustration by David Vendrell
OpenAI has surprisingly announced that it’s shutting down its AI video-generation app, Sora. The move has already prompted Disney to rescind its investment in the company.
The Big Picture: Sora’s arrival created an existential crisis in Hollywood, with seemingly anyone able to produce almost professional-looking videos (many of them based on copyrighted material — another existential crisis). While the entertainment industry braced for disruption, Sora’s shutdown may offer some welcome relief… and leave users confused.
Behind The Decision: In 2024, the first version of Sora was released. In 2025, the updated Sora was let loose. In 2026, Sora was killed off.
OpenAI announced the decision in an X post, adding that more details will be shared soon, including “timelines for the app and API and details on preserving your work.”
The move led Disney to immediately end its blockbuster deal with the firm, which was struck in December.
The deal called for a $1 billion investment in OpenAI, permission to use animated and masked Disney characters in video outputs, and an integration with Disney+.
For now, the Sora app remains functional… and Disney characters can still be used.
Final Generation: While the Sora app may be ending, OpenAI isn’t entirely exiting the AI video business (a version of the feature is still available in ChatGPT), but the shutdown stands as the most public example of OpenAI’s shifting priorities. In a company town hall, OpenAI’s CEO of applications, Fidji Simo, said the company would step away from “side quests” to focus more — and dedicate more compute — to “nailing productivity in general and particularly productivity on the business front.”
In other words, OpenAI recognizes it’s losing valuable enterprise market share to Anthropic and is looking to reverse course to remain the leading startup in the space. Fielding copyright lawsuits with an app that was already cratering in engagement didn’t seem like the best use of resources.
The Future: Disney clearly has a roadmap for using AI to supercharge user-generated content on its streamer… so a deal with another company is likely to be announced at some point this year.
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Today’s email was written by David Vendrell.
Edited by Nick Comney. Polled and Copy-edited by Kait Cunniff.
Published by Darline Salazar.