• by Wayne Friedman , 10 hours ago

OpenAI has made a somewhat shocking decision on Tuesday to close down its controversial Sora video-generation tool -- a deal that is also ending its highest-profile media deal to date -- with Walt Disney.

In a post on social-media platform X, OpenAI did not offer an explanation of why it is ending the AI-video generation platform.

“We’re saying goodbye to Sora. To everyone who created with Sora, shared it, and built community around it: thank you... We’ll share more soon.”

Just last month, Disney struck a three-year licensing partnership with Open AI for its Sora platform, allowing consumers to create short-form videos based on Disney characters and content.

For Disney, this would would have allowed its customers and fans access to more than 200 animated or creature characters from Disney, Marvel, Pixar, and Star Wars for their own short video creations. Sora was to be a major future digital AI innovation for Disney.

As part of the deal, Disney was to take a $1 billion stake in OpenAI.

The closing of the video-generation platform comes just days after Josh D'Amaro became CEO of Disney, following the longtime CEO tenure of Bob Iger.

A Disney statement in response to the Sora closing said: “'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.” 

Sora started up for OpenAI in February 2024, with a text-to-video model. A second iteration of Sora launched in September 2025.

The new Sora update generated much controversy, raising alarms from the Hollywood creative community concerned about IP and copyright issues the platform would seem to create.