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    Home»Startups»OpenAI kills off video generation app, Sora, as Disney pulls the pin on its $1.4 billion investment
    Startups

    OpenAI kills off video generation app, Sora, as Disney pulls the pin on its $1.4 billion investment

    Editor Times FeaturedBy Editor Times FeaturedMarch 27, 2026No Comments4 Mins Read
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    OpenAI has sensationally closed its Sora video technology app, turning away from a expertise founder Sam Altman known as the “ChatGPT for creativity” simply six months in the past.

    And Disney has reportedly severed its US$1 billion (AU$1.43 billion) commitment to invest in OpenAI, bringing its plans to license traditional characters by way of the app to a screeching halt.

    “We’re saying goodbye to the Sora app,” the Sora crew stated in a press release shared to X on Wednesday.

    We’re saying goodbye to the Sora app. To everybody who created with Sora, shared it, and constructed group round it: thanks. What you made with Sora mattered, and we all know this information is disappointing.

    We’ll share extra quickly, together with timelines for the app and API and particulars on…

    — Sora (@soraofficialapp) March 24, 2026

    “To everybody who created with Sora, shared it, and constructed group round it: thanks.

    “What you made with Sora mattered, and we all know this information is disappointing.”

    OpenAI didn’t present a motive for shuttering the standalone app, which created brief movies out of written prompts, displacing the work of conventional manufacturing crews and creatives.

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    The AI firm unveiled the Sora app in October last year, utilising an AI mannequin Altman stated might “drastically enhance” the standard of artwork and leisure.

    “It’s been placing to many people how open the enjoying subject all of the sudden feels,” Altman wrote on his blog, noting Sora’s “surprisingly compelling” capability to generate movies based mostly on photographs of mates or household.

    However Sora’s capability to emulate different, copyrighted characters posed a menace to rightsholders involved their work could be used, with out compensation, to create AI ‘slop’.

    Monetisation unclear

    Altman rapidly declared Sora would give rightsholders extra management over how their characters and mental property could be used.

    He additionally flagged the appreciable price concerned in retaining Sora operating, saying: “we’re going to need to one way or the other become profitable for video technology”.

    Altman proposed a future the place Sora customers might generate and monetise content material utilizing current IPs, with leisure firms offering entry to traditional characters in change for a minimize of fan-generated income.

    “We’re going to attempt sharing a few of this income with rightsholders who need their characters generated by customers,” he stated.

    “The precise mannequin will take some trial and error to determine, however we plan to begin very quickly.”

    Simply two months later, The Walt Disney Firm introduced its fairness funding into OpenAI, and a three-year licensing deal permitting Sora customers to create content material utilizing choose Disney characters.

    Disney additionally turned a significant buyer of OpenAI’s different merchandise, together with its APIs and ChatGPT itself.

    On the time, Disney CEO Robert Iger stated the deal would “lengthen the attain of our storytelling by way of generative AI, whereas respecting and defending creators and their works”.

    The Hollywood Reporter states that plan isn’t any extra.

    “Because the nascent AI subject advances quickly, we respect OpenAI’s resolution to exit the video technology enterprise and to shift its priorities elsewhere,” a Disney spokesperson instructed the publication.

    Regardless of Sora’s departure, the spokesperson stated Disney will proceed to discover alternatives to “have interaction with AI platforms to seek out new methods to fulfill followers”, noting the significance of “applied sciences that respect IP and the rights of creators”.

    This story first appeared on SmartCompany. You’ll be able to read the original here.





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