OpenAI concludes Disney partnership, shuts down Sora tool

OpenAI has abruptly scrapped its AI video tool Sora, a move that has also brought an end to a high-profile partnership with The Walt Disney Company.

According to Reuters, teams from both companies were still discussing a Sora-related project shortly before the decision was made.

Within minutes of that meeting, Disney executives were informed that OpenAI would discontinue the tool, catching partners off guard. The company officially announced the shutdown the following day.

The decision marks a significant strategic shift for OpenAI as it focuses on more profitable areas, including coding tools and enterprise services.

The change comes as the company continues to streamline operations ahead of a potential stock market debut.

The cancellation also halts a proposed $1 billion deal between OpenAI and Disney, announced just months earlier.

The agreement would have seen Disney invest in OpenAI and provide access to more than 200 of its characters for use in AI-generated video content. However, the deal had not been finalised, and no funds were exchanged.

Sources say Sora had been under internal review for some time due to the heavy computing resources required to run the platform.

The decision appears to have surprised even some members of the Sora team, who were informed shortly before the public announcement.