Farewell, Sora — and goodbye to $1 billion from Disney.
The innovative but quickly surpassed video creation app Sora, developed by OpenAI, the creators of ChatGPT, has been shut down. Debuting in December 2024 and bolstered by a billion-dollar Disney agreement a year later, Sora was discontinued by OpenAI on Tuesday, and the Disney contract was terminated as well.
“We’re saying goodbye to the Sora app,” the Sora team announced Tuesday through OpenAI’s X feed. “To everyone who created with Sora, shared it, and built community around it: thank you. What you made with Sora mattered, and we know this news is disappointing.”
OpenAI did not confirm reports that Sora would soon be integrated into ChatGPT, but promised to “share more soon, including timelines for the app and API and details on preserving your work.”
Sora was initially met with great anticipation, with some even speculating it could usher in a new cinematic form. However, it was soon overshadowed by other more comprehensive AI video creation tools like Google’s Veo and Luma Ray.
In December 2025, Disney joined forces with the Sora app via a $1 billion deal, allowing users to create videos featuring Disney’s extensive lineup of copyrighted characters. Yet, as previously noted, the deal was more beneficial for Disney than for OpenAI, which is spending approximately $1 billion monthly.
Despite Disney CEO Bob Iger promoting the OpenAI deal, slated to last for three years, as recently as February 2026, changes in the rapidly advancing AI field led Disney to support OpenAI’s decision to exit video generation and shift its priorities.
“We appreciate the constructive collaboration between our teams and what we learned from it,” a Disney spokesperson said, “and we will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators.”
The announcement’s abruptness and confusion have upset many Sora creators, who took to social media to express their frustrations, indicating potential issues within Sam Altman’s company. OpenAI has also been busy recently implementing new mental health safeguards for teenage users following several wrongful death lawsuits.
Disclosure: Mashable’s parent company, Ziff Davis, filed a lawsuit against OpenAI in April 2025, alleging infringement of Ziff Davis copyrights in the development and operation of its AI systems.