Disney Exits Controversial OpenAI Deal As Generative-AI Video Creation App Sora Is Discontinued

Disney Exits Controversial OpenAI Deal As Generative-AI Video Creation App Sora Is Discontinued

Disney has decided to exit a $1 billion deal with OpenAI, as the company has announced that it plans to shut down its Sora AI video app, just months after it was launched...

By MarkCassidy - Mar 25, 2026 09:03 AM EST
Filed Under: Disney
Source: Via THR

OpenAI has announced that it has decided to shut down Sora, the generative-AI video creation app that was launched last year.

“We’re saying goodbye to Sora. To everyone who created with Sora, shared it, and built a community around it: thank you,” the company said in a statement (via THR). “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.”

The recent news that Disney had entered into a $1 billion partnership with OpenAI stirred up a significant amount of controversy, and the Mouse House has now announced that it has exited the deal.

As part of the three-year licensing agreement, Sora was going to have access to over 200 masked, animated or creature characters from Disney, Marvel, Pixar and Star Wars to utilise for user-prompted videos. Sora and ChatGPT Images were to generate “fan-inspired videos with Disney’s licensed characters in early 2026 — with Disney+ adding a curated selections of Sora-generated videos."

"Technological innovation has continually shaped the evolution of entertainment, bringing with it new ways to create and share great stories with the world," Disney CEO Bob Iger said at the time. "The rapid advancement of artificial intelligence marks an important moment for our industry." Through this collaboration with OpenAI, we will thoughtfully and responsibly extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works."

OpenAI hasn't given a reason for its decision to shutter Sora, but it obviously left Disney with little choice.

“As the nascent AI field advances rapidly, we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere,” a Disney spokesperson said. “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.”

It's probably fair to say that very few people outside of Disney's top brass were too put out by this news, but the company exiting this deal doesn't mean it will be getting out of the AI business altogether. Though nothing has been confirmed, Disney is expected to enter into a deal with another AI company at some point.

What do you make of this news? Drop us a comment down below.

About The Author:
MarkCassidy
Member Since 11/9/2008
Mark Cassidy is a writer, photographer, amateur filmmaker, and Rotten Tomatoes-approved critic from Dublin, Ireland.
Moana CinemaCon Standee Reveals New Look At Dwayne Johnson's Maui (And His Wig)
Related:

Moana CinemaCon Standee Reveals New Look At Dwayne Johnson's Maui (And His Wig)

THE LITTLE MERMAID Star Halle Bailey Reveals How She Dealt With Racist Casting Backlash
Recommended For You:

THE LITTLE MERMAID Star Halle Bailey Reveals How She Dealt With Racist Casting Backlash

DISCLAIMER: As a user generated site and platform, ComicBookMovie.com is protected under the DMCA (Digital Millenium Copyright Act) and "Safe Harbor" provisions.

This post was submitted by a user who has agreed to our Terms of Service and Community Guidelines. ComicBookMovie.com will disable users who knowingly commit plagiarism, piracy, trademark or copyright infringement. Please CONTACT US for expeditious removal of copyrighted/trademarked content. CLICK HERE to learn more about our copyright and trademark policies.

Note that ComicBookMovie.com, and/or the user who contributed this post, may earn commissions or revenue through clicks or purchases made through any third-party links contained within the content above.

Ironbot
Ironbot - 3/25/2026, 9:49 AM
Well, that puts Josh D’amaro ahead of Bob Iger by multiple points in my book
Huttsbane
Huttsbane - 3/25/2026, 9:51 AM
@Ironbot - For now
Huttsbane
Huttsbane - 3/25/2026, 9:51 AM
The fact that Disney was willing to make a deal in the first place says it all. Yeah they are definitely going to use AI in the future and most likely replace actors and nobody is going to be surprised at Disney when that happens.
JackDeth
JackDeth - 3/25/2026, 9:52 AM
I might be speaking too soon, but this MIGHT be the beginning of the end of this bubble. Fingers crossed.
Deklipz
Deklipz - 3/25/2026, 12:37 PM
@JackDeth - They can’t just keep throwing money in a pit and watching it burn. Data centers burn through water and power like it’s nothing and that isn’t cheap, no matter how the industry tries sto sugar coat things.

AI is energy intensive and without a viable way to monetize it they’ll end up breaking. I’m hoping this is the starting point to that as well.
artofwilldeonne
artofwilldeonne - 3/25/2026, 9:54 AM
They took all your data. A closed up shop. That’s all. That’s why the AI stuff is shutting down. They have enough
Huttsbane
Huttsbane - 3/25/2026, 10:02 AM
@artofwilldeonne - thats Disney for ya
EskimoJ
EskimoJ - 3/25/2026, 11:03 AM
@artofwilldeonne - Sounds like DOGE.
Spidey91
Spidey91 - 3/25/2026, 10:24 AM
about time this AI bubble sh*t started bursting.
Ojeet78
Ojeet78 - 3/25/2026, 10:40 AM
there are so many AI slop generators out there now that this doesn't feel like a big win. Hopefully, it is a start though.
Given all their defense and weapons contracts, and all this data at their disposal I can't help but feel that Open Ai is trying to save up money to do something far more sinister.
dragon316
dragon316 - 3/25/2026, 12:09 PM
@Ojeet78 - there is a lot of ai CRAP generators down work some don’t mostly have pay I only use ai generator take music turn song into instrumental version
comicfan100
comicfan100 - 3/25/2026, 11:09 AM
That bubble can't pop fast enough
dragon316
dragon316 - 3/25/2026, 12:07 PM
All ai crap should die
JackDeth
JackDeth - 3/25/2026, 1:03 PM
Oh also, isn't it super ironic that a company that made all its money with public domain characters (then changed the laws so no one else can use them) now gets SUPER pissed if their characters are copied? I just find that funny as hell.

Please log in to post comments.

Don't have an account?
Please Register.

View Recorder