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Commentary: The Disney/Sora Fiasco Shows the Limits of the AI Craze

Sora peaked at over 6 million downloads by November 2024 but declined due to AI quality issues and unresolved licensing, leading to OpenAI's shutdown announcement in March 2026.

Disney and OpenAI thought their billion-dollar deal would underscore the importance of AI for Hollywood's future. Its ignominious collapse proves just the opposite

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The closure of Sora ended one of the most publicized agreements in recent history between Hollywood and Silicon Valley in a matter of hours. By December 2025, Disney and OpenAI had announced a three-year partnership. The entertainment giant was committed to investing massively in the artificial intelligence company. In exchange, more than 200 of his characters were to appear in videos generated by Sora. Three months later, everything collapsed. …

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The Hollywood Reporter broke the news in Los Angeles, United States on Monday, March 30, 2026.
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