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OpenAI pulls the plug on Sora, the viral AI video app that sparked deepfake concerns

OpenAI ends Sora and a $1 billion Disney deal, citing compute costs and ethical concerns as it shifts focus to enterprise AI and robotics ahead of a potential IPO.

  • On Tuesday, OpenAI announced it will discontinue its Sora consumer app and API, shuttering the viral AI video platform less than six months after its public launch. The company plans to share timelines for data preservation soon.
  • Rising compute demands and a shift toward enterprise priorities prompted OpenAI to redirect the Sora research team to robotics and world simulation research. The move aligns with the company's streamlining ahead of an expected IPO later this year.
  • The shutdown collapses a planned three-year licensing deal and $1 billion investment with The Walt Disney Company announced in December 2025. Sources indicate the agreement never finalized and no money changed hands between the companies.
  • Disney stated it "respects OpenAI's decision to exit the video generation business" and will continue engaging with AI platforms. Users face uncertainty over preserving communities and content created during the app's six-month operation.
  • While Sora exits the market, OpenAI remains focused on developing "agentic" technology for autonomous tasks. Competitors including Anthropic and Google continue advancing their own video generation models in an increasingly crowded landscape.
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Forbes broke the news in United States on Tuesday, March 24, 2026.
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