Tuesday, March 24th 2026

OpenAI Shuts Down Sora API and App, Disney Withdraws $1 Bn Investment

There has been much said about OpenAI's Sora video app—both positive, about how the tech would make video creators and social media influencers obsolete, and negative, about how it would kill creativity and fill the internet with soulless slop—but it seems like neither side of that argument will ever get to find out if they were correct. In a recent post on X, OpenAI announced that it would be shutting down both the Sora app and API, suggesting a pivot away from video generation at OpenAI. A final date for the app and API closure has not yet been announced, but OpenAI says it will reveal more information soon.

Following the announcement, The Hollywood Reporter reported that a Disney spokesperson had confirmed that the media giant would be withdrawing a previously announced $1 billion investment into OpenAI's video generation model and product. Disney's statement reads: "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 closure of Sora comes after backlash and legal action against OpenAI from a number of publishers, including Square Enix, Bandai Namco, and Nintendo over AI-generated videos created with some of their characters and other IPs.
Sources: Sora on X, The Hollywood Reporter
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36 Comments on OpenAI Shuts Down Sora API and App, Disney Withdraws $1 Bn Investment

#1
Darmok N Jalad
Hmm, is this a bubble bursting? OpenAI has gotten so much investing, and spent so much cash, and they can’t seem to field a winning product. For example, they bought Ive’s “company” for some absurd amount, even though it had like 50 employees and no products on the market. Even now, they talk about some big consumer product that’s “coming soon,” yet here we are with nothing to show.
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#2
trsttte
"what you made with sora mattered"

:D:D:D:D:D:D:D yeah right, a bunch of useless non-sensical videos that wasted a fuck ton of electricity and compute time, that sure mattered :ohwell:
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#3
TheGeekn°72
Darmok N JaladFor example, they bought Ive’s “company” for some absurd amount
what company?
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#4
LabRat 891
Intriguing...

I take it OpenAI's Sora was under some kind of massive legal threat? Clearly, whatever they ran away from was over a Billion in risk, that they didn't think they could fight, and win.
Posted on Reply
#5
FreedomEclipse
~Technological Technocrat~
Darmok N JaladHmm, is this a bubble bursting? OpenAI has gotten so much investing, and spent so much cash, and they can’t seem to field a winning product. For example, they bought Ive’s “company” for some absurd amount, even though it had like 50 employees and no products on the market. Even now, they talk about some big consumer product that’s “coming soon,” yet here we are with nothing to show.
I think they were getting tired of people using their Animation IP to generate rather....questionable content that they didnt think was right for the Disney brand. Or at least this was part of the problem.
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#6
lambda
trsttte"what you made with sora mattered"

:D:D:D:D:D:D:D yeah right, a bunch of useless non-sensical videos that wasted a fuck ton of electricity and compute time, that sure mattered :ohwell:
Couldn't you make the same claims about gaming or any entertainment product for that matter?
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#8
randomTPUreader
I love seeing news pieces like this. The AI bubble cannot burst soon enough!
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#9
R-T-B
Good. Where's grumpy cat when you need him?
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#10
trsttte
lambdaCouldn't you make the same claims about gaming or any entertainment product for that matter?
No you couldn't. There's an entire economic ecosystem built around gaming, with millions of dollars invested, millions of people employed producing something, and millions of consumers buying what is more than a simple product, it's an art form.

Sora uses a ton of energy and compute resources to produce generic videos and/or memes that a few people will watch once and discard. Nothing of value is produced, just spent and wasted
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#12
katzi
lambdaCouldn't you make the same claims about gaming or any entertainment product for that matter?
I doubt the collective gaming users of a country could equal the power consumption of 1 data centre.
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#13
Solaris17
Super Dainty Moderator
You cant put the genie back in the bottle though. Sora was just 1 video generation model.
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#14
TumbleGeorge
There were countless "Disney" shorts on the internet. Propaganda comedy. The quality was as if Disney had actually made them. Excellent old school quality.
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#15
mb194dc
They were burning $15m a day on Sora. This part of the ML bubble feels like the first tech bubble. There was never any way Sora could be profitable, costs way too high.
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#16
AusWolf
Yeah, it's not a bubble alright! :D
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#17
kondamin
While interesting, it should have never become a public thing in the first place.
It should only be made publicly available when it costs nothing.
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#18
Bwaze
I still think it's prematurely to start celebrating the popping of the bubble.

This just means they don't see the point in providing AI to the end customers, we just don't pay enough with subscriptions. That doesn't mean an equivalent of Sora won't be available in professional market, replacing CGI artists, filmmakers with AI generated stuff.

AI is perfectly able to pay for itself without the individual end customers, as long as it has the ability to replace people in corporations - and we se layoffs already, and stock market is applauding it. We were just beta testers, providing them with free uploads of material, until we weren't needed.
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#20
lexluthermiester
b1k3rdude"Disney Withdraws $1 Bn Investment"

You laugh, but I'd bet real money Disney is seeing the same signs and signals a lot of people are and don't want to loose/waste $1B to something that is going to be dramatically less or worthless in the near future.
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#21
human_error
LabRat 891Intriguing...

I take it OpenAI's Sora was under some kind of massive legal threat? Clearly, whatever they ran away from was over a Billion in risk, that they didn't think they could fight, and win.
I'd say it was more likely that the risk was under $1b for the video lawsuits, but if they lost it then sets a precedent making it easier for non-video content generation to also be under legal threat.

There is also the non-monetary cost question - was working on video having a detrimental impact on non-video model training. There's only so much compute capacity and engineering expertise they have and other non-video models are threatening chat GPTs core capabilities. They need to focus on staying competitive there.
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#22
Bwaze
This also comes after Disney and other studios expressed concerns about Chinese AI video generator Seedance 2.0, which surpassed all the Western attempts at video generating.

The Chinese AI app sending Hollywood into a panic

And if you want to sue someone for copyright infringements, you can't be doing the same with other hand.

This is of course big problem for Holywood, who has been cheaping out on CGI for years now, to the point that big blockbusters with several hundred million dollar budgets look worse than their decades old, much cheaper predecessors, and they look worse than cheaply made AI generated ones.

Who's the slop now?

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#23
_roman_
good - sora has to go.

i do not watch a certain ** television but it was said at the end of the video the "SORA" "AI" "icon" was in the fake news. fake news as it was wrong statements and computer based falsified fake news. facts. as proven. if it were wrong they would have been sued already in ** and ** for ** television fake news. note: lets stick to the fact they used sora to generate a video which they aired on television over satellite and locally.

self sencorship with **. let's respect the rules although i see it myself partly violated by politics. schöllhammer and heinzlmaier, as seen quite often as experts in certain media, will never claim something which is false. they phrase their words properly because of the culture to sue others in ** and **.
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#25
remixedcat
(Rest In Piss ai bozos ).... soon
...


Me hopes.


Tries to acquire poking device....
Posted on Reply
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