“We’re saying goodbye to Sora.”
In an unexpected move, AI tech giant OpenAI has halted its video generation platform Sora, just months after its high-profile launch.
The company said in a statement: “To everyone who created with Sora, shared it, and built a community around it: thank you. What you made with Sora mattered, and we know this news is disappointing. We’ll share more soon, including timelines for the app and API and details on preserving your work.”
Disney deal fallout
The decision comes after OpenAI struck a major deal with the cartoon mogul, The Walt Disney Company, last December – reportedly worth $1 billion over three years.
The agreement opened the door for AI-generated video using more than 200 IP characters, ranging from Mickey Mouse and Yoda to Moana and other iconic franchises.

Sam Altman. Image: TED X
However, with Sam Altman shutting down the platform, the deal no longer holds, and Disney has stepped away from what was positioned as a game-changing collaboration.
A Disney spokesperson said: “As the nascent AI field advances rapidly, we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere.
“We appreciate the constructive collaboration between our teams and what we learned from it, 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 Sora app generates video from text prompts, and the deal sparked strong backlash from the creative community, who warned it could devalue iconic brands and artistry while raising broader concerns around copyright at the intersection of Hollywood and AI.
A missed breakthrough for AI
Meanwhile, Sora could have addressed one of the biggest challenges facing AI video technology: copyright and intellectual property.
By legitimising the use of major entertainment IP, the platform had the potential to set a new standard for how AI-generated content interacts with licensed material.
The latest victim of IP abuse was Seedance 2.0, a hyper-realistic AI video tool developed by TikTok owner ByteDance, which reportedly received an “immediate cease” warning from the Motion Picture Association (MPA), which represents The Walt Disney Studios and other major studios.
Top Image: AI-Generated
