OpenAI’s much-anticipated video generator will soon be discontinued, despite previous excitement and a major deal with Disney. On Tuesday afternoon, OpenAI announced, “We’re saying goodbye to Sora,” the video generation tool that was introduced at the end of 2024 and was part of a significant licensing agreement with Disney just a few months prior. The Wall Street Journal reported this decision earlier, with OpenAI’s CEO Sam Altman informing staff that both the Sora app, similar to TikTok, and the API access for developers would be shut down, with no intention to integrate the feature into ChatGPT as previously speculated.
The Hollywood Reporter indicated that as a result of this action, Disney’s announced deal in December to invest $1 billion in OpenAI, license its characters for Sora, and incorporate AI-generated videos into Disney Plus, will also end. On the same day, OpenAI’s CFO Sarah Friar told CNBC that the company had secured an additional $10 billion in funding from investors as it considers a potential IPO, following a $110 billion fundraising round announced in February.
OpenAI has not provided any comments or further explanation for this pivot but there have been signs of a shift towards focusing on practical adoption rather than pursuing “side quests,” following Altman’s previous “code red” alert concerning competitive pressure between ChatGPT and Google Gemini.
Last week, the WSJ reported that OpenAI is developing a ChatGPT desktop “superapp” to streamline its product range, focusing on Codex and its AI browser. Executive Fidji Simo tweeted regarding this transition, emphasizing the importance of doubling down on successful initiatives like Codex and avoiding distractions.
A report from Reuters suggested that the future of Sora had been in discussion among company executives for some time due to its high computing resource requirements, which constrained other teams, and that no monetary transactions took place between OpenAI and Disney. This sudden announcement seemed to catch employees off guard, coming shortly after OpenAI had issued a statement about Sora’s safety standards.
It also emerged that former Meta and Instacart executive Simo now holds the title of “CEO of AGI deployment,” while Altman reportedly mentioned that the company’s security and safety teams do not report directly to him.
An internal update about Sora reads: “Today, after careful internal discussion about our broader research priorities, we’ve made the difficult decision to discontinue the Sora app. We recognize the significant investment of time and energy many of you poured into Sora, building not just content but also audiences and real communities. The creativity that emerged exceeded what we could have anticipated. Our current focus is on making this transition as clear and thoughtful as possible. We will share timelines and access details so you can plan accordingly, and we are exploring ways to support the export and preservation of your work. Thank you for being part of this community and joining us on this journey.”
Update, March 25th: Added note from the Sora app, and additional details from CNBC and Reuters.