OpenAI discontinues Sora video-generation app to focus on robotics
Walt Disney Company and OpenAI end three-year deal following Sora’s closure
OpenAI has officially discontinued its artificial intelligence video-generation platform, Sora, less than two years after the tool's debut revolutionised digital content creation.
The company confirmed on Wednesday, that it is shutting down both the consumer application and the professional interface. This strategic pivot marks a significant retreat from the AI video market, as the firm redirecting its vast resources toward "agentic" technology and robotics.
OpenAI stated that the same advanced models used to simulate realistic movement in video will now be utilised to train robots to solve "real-world, physical tasks" with minimal human oversight.
The closure has also resulted in the termination of OpenAI’s landmark $1bn partnership with The Walt Disney Company.
Signed in late 2024, the deal was intended to allow Sora users to generate content using iconic intellectual property, such as Mickey Mouse and Star Wars characters.
While the agreement was initially hailed as a turning point for Hollywood, Reuters reports that no funds had actually changed hands before the cancellation.
A spokesperson for Disney noted that the studio will now explore "other AI platforms" to find responsible ways to utilise the technology without infringing on its copyright protections.
Industry analysts have described Sora as a "resource black hole," noting that while it generated immense global interest, it struggled with monetisation.
According to Sensor Tower data, Sora earned just $1.4m in net revenue, a stark contrast to the $1.9bn generated by ChatGPT in the same period.
Furthermore, the platform faced mounting pressure regarding the creation of deepfakes and misinformation. Experts suggest the decision to wind down Sora now may be an effort to "minimise risks" as OpenAI prepares for a potential initial public offering (IPO) later this year.