OpenAI Discontinues AI Video Generating Model Sora
Disney executives were informed of the decision just 30 minutes after a meeting with OpenAI teams.
OpenAI has abruptly discontinued its AI video tool Sora, catching partners, including Walt Disney, off guard and signaling a strategic shift toward more profitable business areas.
According to media reports, Disney executives were informed of the decision just 30 minutes after a meeting with OpenAI teams discussing a Sora-related project. “It was a big rug-pull,” said a person familiar with the matter.
The move effectively ends a previously announced $1 billion partnership between the two companies, under which Disney planned to invest in OpenAI and provide access to its characters for AI-generated video content. However, the deal had not been finalised and no funds were exchanged.
OpenAI publicly confirmed the decision on Tuesday, with the Sora team stating, “We're saying goodbye to Sora ... we know this news is disappointing,” adding that further details on timelines and user data would follow.
We’re saying goodbye to the Sora app. To everyone who created with Sora, shared it, and built community around it: thank you. What you made with Sora mattered, and we know this news is disappointing.
— Sora (@soraofficialapp) March 24, 2026
We’ll share more soon, including timelines for the app and API and details on…
First introduced in 2024, Sora gained attention for its ability to generate high-quality videos from text prompts. A standalone app launched in 2025 allowed users to create and share AI-generated clips.
Sources said the tool required significant computing resources, prompting internal debates about its viability. The company is now focusing on areas such as enterprise AI, coding tools, and artificial general intelligence (AGI), as competition intensifies from rivals like Anthropic.
