OpenAI To Shut It Doors On Sora, Resulting In Disney Leaving One Billion Dollar Deal With AI Company

Just months after the Sora AI video app was launched, OpenAI has announced its decision to shut down the standalone app. The official Sora account on X released a statement earlier today confirming the app will be saying “goodbye”, writing,

We’re saying goodbye to Sora. To everyone who created with Sora, shared it, and built a community around it: thank you. What you made with Sora mattered, and we know this news is disappointing. We’ll share more soon, including timelines for the app and API and details on preserving your work.

Sora 2 launched in late September 2025 and caused major waves in the industry, with the company even having to create new rules for individuals generating videos to protect Hollywood studios and stars, giving them more power over their likeness and IP on the app. Though some studios were very interested in what Sora had to offer, even Disney struck a billion-dollar deal with OpenAI for a stake in the company in exchange for Disney characters to be added to the Sora app. But it has been reported that the deal has fallen through, with Disney opting out, according to The Hollywood Reporter.

But it does not seem that Disney will stop its search for AI usage as the company released in a statement today its hope to engage with AI in the future, writing,

As the nascent AI field advances rapidly, we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere. We appreciate the constructive collaboration between our teams and what we learned from it, and we will continue to engage 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.

While OpenAI’s CEO, Sam Altman, is not closing the doors on video-making, they have made it clear that they are prioritizing other business revenues at the moment. There is no official last day for Sora as of yet, but it sounds like it will come sooner rather than later.

For more updates on this story, stay with us here at MXDWN for all things movie news.

Mallery McKay: I am a graduate student, focusing on writing for and about films. I have a passion for films and the news surrounding them, so I always try and keep up to date with the latest news.
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