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

#26
b1k3rdude
lexluthermiesterYou 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.
When I use the Nelson meme, I am displaying my Schadenfreude. What your saying reinforces my sentiment, I want this to happen. The sooner it happens the better the world will be in the long term.
Posted on Reply
#27
L'Eliminateur
Considering that generating video is order of magnitude more compute intensive than a LLM, it makes sense they would nuke it and simply repurpose those servers for LLM text-only.

Specially when their bubble is bursting super hard
Posted on Reply
#28
Reavheavy
“What you made with sora mattered” it mattered in making me want to kill myself every time i found a fruit love island video on my TikTok fyp. We were devolving as a society.
Posted on Reply
#29
lexluthermiester
Reavheavymaking me want to kill myself every time i found a fruit love island video on my TikTok fyp.
TickTok? Yeah, THERE's your problem.
Posted on Reply
#30
CoD511
I think it's a little different comparing personal use and business use. The amount of compute for video is ridiculous and would never have been profitable with such free end-user access.
Posted on Reply
#31
WonkoTheSaneUK
CoD511I think it's a little different comparing personal use and business use. The amount of compute for video is ridiculous and would never have been profitable with such free end-user access.
Agreed.
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.
Posted on Reply
#32
kondamin
WonkoTheSaneUKAgreed.
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.
That would be about 200kwh of power.
So no, a little clip does not cost that much money to generate
Posted on Reply
#33
CoD511
kondaminThat would be about 200kwh of power.
So no, a little clip does not cost that much money to generate
I think we were referring overall perhaps to a business sense in datacenter (which includes ownership investment or cost for renting compute capacity, etc)?

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.
Posted on Reply
#34
kondamin
CoD511I think we were referring overall perhaps to a business sense in datacenter (which includes ownership investment or cost for renting compute capacity, etc)?

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.
No that would go down the more it is used.

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.
Posted on Reply
#35
Reavheavy
lexluthermiesterTickTok? Yeah, THERE's your problem.
What’s a guy gonna watch otherwise? YouTube shorts? But i mostly do it to laugh at “techtokers” who think that intel is shyt and amd is too
Posted on Reply
#36
lexluthermiester
ReavheavyWhat’s a guy gonna watch otherwise?
Umm... let's see..
ReavheavyYouTube shorts?
Youtube? Yes. Shorts? Hell no.

Seriously, how the hell was that even a question?
ReavheavyBut i mostly do it to laugh at “techtokers” who think that intel is shyt and amd is too
Those kinds of people are a lost cause and deserve to be openly derided & mocked.
Posted on Reply
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