Disney Cancels OpenAI Deal As Sora Shutters

Just months after it was launched, OpenAI has announced it will shut down its Sora AI video app.

As a result, THR reports that according to its sources, Disney is also exiting the deal it signed with OpenAI last year – one in which it pledged to invest $1 billion in the company and agreed to license some of its characters for use in Sora.

Sora launched in Fall last year and shook the industry with rampant abuse of established studio intellectual property and known actors. Within a few days, the company backtracked and allowed studios and talent more control over their IP and likenesses on the platform.

In an official statement, OpenAI says: “We’re saying goodbye to Sora. 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. We’ll share more soon, including timelines for the app and API and details on preserving your work.”

A Disney spokesperson tells the trade: “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.”

With Sora shutting down, Google is now the only player in the AI video space with global scale – but that company hasn’t inked any deals with IP holders as yet.