OpenAI Shuts Down Sora AI Video Tool, Ends Disney Partnership

Casablanca – OpenAI has shut down its AI video-generation app Sora, less than two years after it drew global attention for producing highly realistic clips from simple prompts.

The company confirmed the decision to the BBC on Wednesday, saying it is shifting focus toward other areas, including robotics and “agentic” systems designed to complete tasks with minimal human input. The shutdown covers both the consumer app and the web-based platform used by professionals.

At the same time, OpenAI is ending its $1 billion content partnership with The Walt Disney Company. Disney said it respects the decision and will look to other AI platforms while continuing to address intellectual property concerns.

Sora launched in 2024 and quickly gained attention for the quality of its generated videos. But questions about its business model followed. Data from Sensor Tower shows the app generated about $1.4 million in global net in-app revenue, compared with $1.9 billion for ChatGPT over the same period.

Analysts pointed to deeper issues. Thomas Husson of Forrester described Sora as costly to run with limited monetization. The platform also faced ongoing challenges around non-consensual content, misinformation, and copyright violations.

The Disney deal, announced in December, had allowed users to generate videos featuring characters like Mickey Mouse and Yoda. It was seen as a major shift in how Hollywood engages with AI. However, Reuters reported no money had changed hands before the agreement was scrapped.

Competition also grew. Rival tools, including China’s Seedance, gained traction after viral AI-generated videos featuring well-known characters circulated online.

OpenAI said the technology behind Sora will now be used to help train robots for real-world tasks. Its image-generation tools inside ChatGPT are not affected.

The move comes as many AI companies continue to operate without consistent profits. High computing costs, infrastructure demands, and slow revenue growth remain a challenge across the industry, even as investment and competition increase.

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