OpenAI has announced the shutdown of its AI video generation tool, Sora, effectively ending a planned partnership with The Walt Disney Company.
The decision, disclosed on Tuesday, reportedly came shortly after teams from both companies concluded discussions related to the tool. The move halts a proposed $1 billion deal that would have seen Disney invest in OpenAI and provide access to its catalogue of characters for AI-generated video content.
According to reports, the agreement had not been finalised, and no funds had been exchanged prior to the shutdown.
OpenAI confirmed the decision in a statement posted by the Sora team, thanking users and creators who had engaged with the platform and indicating that further details on timelines and data preservation would be shared.
The development also surprised some employees, with members of the Sora team reportedly informed of the shutdown on the same day, despite recent updates on the tool’s safety and development progress.
Introduced in early 2024, Sora gained attention for its ability to generate high-quality video content from text prompts. A standalone version was launched in 2025, allowing users to create and share AI-generated clips.
The company appears to be redirecting its focus toward broader artificial intelligence initiatives, including work on advanced AI systems and robotics, as well as efforts to integrate its services into a unified platform.
OpenAI Chief Executive Officer Sam Altman is also said to be overseeing internal restructuring, including changes to how safety and security teams operate within the organisation.
Despite the setback, Disney acknowledged the decision and indicated that discussions between the two companies could continue in other areas.
