OpenAI Shuts Down Sora, Impacting Disney’s AI Video Experiment

Just a few months ago, OpenAI’s Sora looked like the next big thing in fan-driven storytelling. Now, it’s over. OpenAI is shutting down its Sora division.

“We’re saying goodbye to Sora. 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 team statement

It’s a big pivot for a product that was being positioned as the future of content creation. That future included Disney. In late 2025, Disney partnered with OpenAI in a $1 billion deal to add more than 200 characters to Sora’s AI video generator. The lineup, pulled from Disney Animation, Pixar, Marvel, and Star Wars, would allow users to create short-form videos featuring Disney’s most recognizable characters.

The move would’ve also allowed Disney to somewhat control the inevitable: the coming tidal wave of fan-generated AI content. Instead of simply watching Disney stories, fans could create their own. Now, that experiment is ending way earlier than expected. Disney is exiting the deal with OpenAI:

“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 the news probably didn’t thrill Josh D’Amaro, it’s clear AI remains part of Disney’s long-term strategy. Today’s news didn’t change that, not even a little. But it does mean Disney will need to find a new partner to generate that short-form content.