OpenAI Shuts Down Sora Generative Video App, Disney Pulls Out of Investment and Licensing Deal

Sam Altman’s OpenAI has shut down its controversial video generation app Sora, the company announced Tuesday.

As a result, Disney has exited the $1 billion investment deal it made last year with OpenAI that would have allowed Sora to license Disney-owned characters and content.

In a social media post (which can be seen below), Sora announced: “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. We’ll share more soon, including timelines for the app and API and details on preserving your work.”

Sora 2 hit like a tidal wave when it launched in September 2025, shocking Hollywood studios and artists with its ability to allow users to create realistic videos featuring highly valuable intellectual property and the likenesses of public figures such as movie stars and politicians.

https://twitter.com/soraofficialapp/status/2036546752535470382?ref_src=twsrc%5Etfw

The Japanese government urged OpenAI to refrain from copyright infringement, while the Japan Commercial Broadcasters’ Association warned that OpenAI and Sora 2’s use of anime IPs had the “potential to destroy Japan’s content production culture and ecosystem.”

Movie studios and streamers were quick to sic their legal teams on Sora, and unions such as SAG-AFTRA were aghast at the uncompensated appropriation of their members’ voices and likenesses in slews of viral videos created by anyone who could use Sora 2.

For now, Disney has backed off its deal with OpenAI, although its possible the media empire could make a deal with a different artificial intelligence giant down the line.

“As the nascent AI field advances rapidly, we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere,” a Disney spokesperson informed The Hollywood Reporter.

“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.”

The original agreement between Disney and OpenAI would have allowed Sora users to create content using Disney-owned characters from such franchises as Marvel, Star Wars, Disney Animation, and Pixar, but without any talent likenesses or voices. The companies had agreed to “a “shared commitment to the responsible use of AI that protects user safety and the rights of creators.”