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
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.


36 Comments on OpenAI Shuts Down Sora API and App, Disney Withdraws $1 Bn Investment
Specially when their bubble is bursting super hard
I saw something that said each short video took $15-18 of compute, and they were trying to sell $20 subscriptions.
TL;DR - Accountants say no.
So no, a little clip does not cost that much money to generate
kw/h cost is a very generous item to use for accurate compute cost overall, imo. I have never see anyone renting cost in kw/h to customers for compute cost.
if you are using the API sora 2 pro costs 0.70usd per second of video
that's what it costs you, not what it costs openAI.
I highly doubt they are selling tokes at a loss and are paying market rates for the hardware they are running considering their volume.
Seriously, how the hell was that even a question?Those kinds of people are a lost cause and deserve to be openly derided & mocked.