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HomeNewsOpenAI Shuts Down Sora Video App, Scuttling $1B Disney Investment

OpenAI Shuts Down Sora Video App, Scuttling $1B Disney Investment

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OpenAI announced it will shut down its Sora AI video-generation app and API, shifting focus to world simulation research for robotics. The decision also ends a reported $1 billion investment from Disney tied to a character licensing deal. Sora, which evolved from a text-to-video tool into a social platform, reportedly cost the company about $15 million per day and faced scrutiny over copyright and misinformation risks.


OpenAI will shut down Sora, its AI video-generation platform, as it pivots to world simulation research to advance robotics. The company confirmed no changes will be made to the AI Image Generator inside ChatGPT.

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OpenAI stated, “As we continue to focus on our roadmap to AGI and the compute needed to deliver agentic AI capabilities, we’re making the tough decision to discontinue supporting Sora as a consumer app and API offerings.” The company said it will share more information soon, including shutdown timelines and details on how users can preserve their work. A proposed $1 billion investment from Disney connected to Sora is no longer moving forward according to a report. OpenAI first introduced Sora in February 2024 and later expanded it with the Sora 2 model and a standalone mobile app.

The app’s “cameos” feature allowed users to insert themselves into AI-generated scenes. Legal experts warned the system could recreate recognizable characters and copyrighted franchises, raising intellectual property concerns detailed in a three-year agreement. Researchers also warned that Sora could be used to spread misinformation, noting it produced realistic-looking news footage of events that never happened.

While OpenAI’s entry into video generation was highly anticipated, it became a consistent money drain, reportedly costing about $15 million per day. Disney said it respects OpenAI’s decision and will continue exploring other ways to work with generative AI. A Disney spokesperson reportedly said, “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.”

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