OpenAI unexpectedly kills Sora, and I wonder if this is the start of a mini AI bubble collapse | Daily Reports Online
- OpenAI is shutting down Sora
- It’s not clear why, but people will be able to somehow save the videos that they created in the app and elsewhere
- Disney may have also exited its big OpenAI deal
In a stunning turn of events, OpenAI has unexpectedly shuttered the Sora app, and Disney may have walked away from its $1 billion deal in support of the generative video technology.
Less than 18 months after launching Sora to wide shock and acclaim and less than a year after launching the Sora App, OpenAI announced in a X post on Tuesday, “We’re saying goodbye to Sora.”
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…March 24, 2026
The post thanks the Sora community (which mostly lived on as a briefly popular social generative video-sharing app) and admits that the news is “disappointing.” Perhaps more importantly, they promise to share details on how the Sora community can save their generative AI video work.
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Separately or perhaps what triggered this decision (or vice versa), The Hollywood Reporter claims Disney has pulled out of the $1billion dollar investment and deal, which would have brought iconic Disney characters to the Sora platform. One of Sora’s chief features was the ability to use, with permission, AI characters based on real Sora users (this included OpenAI CEO Sam Altman) simply by including their user names in the prompt. I created quite a few featuring Altman and me, and also a bunch just featuring me (see below).
It’s unclear what precipitated this decision. Altman has yet to comment on it. In the Apple App Store, the Sora App is still #11 in Photo and Video and is still functioning on my iPhone. But the concept of an AI-generated video social platform hasn’t really caught on. In fact, there’s been some backlash because of all the “AI slop” coming out of Sora and being dumped onto other social platforms like TikTok.
I made roughly 20 Sora videos over the last six months, which is not much considering how often I post on social media. Still, the Sora App was essentially a showcase for OpenAI’s generative video models and a powerful tool designed to attract video pros who might integrate the tools into their traditional content creation pipelines.
One has to assume that was the big play with Disney, which planned to let OpenAI use some of its characters but surely expected more out of OpenAI for its own content and massive intellectual property pipeline.
Analysis: Why is Sora dying?
Did OpenAI see the massive resource suck created by a widely used generative video platform and finally balk? Or did Disney pull out, and OpenAI realized it could no longer fund Sora?
It’s possible that this reported demise of the Disney/OpenAI deal was a first decision by new Disney CEO Josh D’Amaro, who took over on March 18. After all, Bob Iger made the deal. Perhaps D’Amaro didn’t like the deal, OpenAI’s access to Disney characters, or thought he could get a better, more lucrative deal elsewhere.
A Disney spokesperson shared this statement after OpenAI’s announcement: “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.”
While that sounds like OpenAI blinked first, it’s still not clear what went on behind the scenes, especially without a more detailed statement from Sam Altman and OpenAI.
There’s also the competition to consider. Sora’s capabilities seem somewhat less than special after ByteDance’s Seedance 2.0 arrived, and people were suddenly creating shockingly realistic clips featuring well-known stars (all without permission).
Sora didn’t create a business. It was like an early settler overrun by a metropolis of better options.
Still, the collapse of Sora does make one wonder if this is the first chip in the dam. Has the massive wall of unfettered AI confidence sprung a leak? Will it grow and lead to some sort of collapse? Unlikely. Mini bubble pops are to be expected as this fast-moving industry continues to grow and adjust. Not every start-up or vertical business can be a winner.
Many will lose and disappear.
As for Sora, well, it was weird and fun. I created some silly and eye-opening short videos on the broader platform (available on the web) and the app. I wish I’d experimented more, but I’m sure I’ll have more chances with the next big AI video thing.
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