Summary:
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OpenAI closes AI video generation app Sora, impacting Disney deal, as company shifts focus to other products.
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Sora hit 1 million downloads quickly but saw decline, prompting shutdown ahead of IPO for OpenAI.
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Disney respects OpenAI’s decision, looks to engage with other AI platforms after Sora shutdown.
OpenAI announced Tuesday it is shutting down Sora, its AI video generation app, just months after its public launch , and the move is taking a high-profile Disney deal down with it.
The company posted on X that it is “saying goodbye to Sora,” promising to share timelines for the app and API shutdown and details on preserving user content.
Sora hit 1 million downloads in under five days after its launch and rocketed to the top of Apple’s App Store, but momentum faded quickly. By early 2026, the app was seeing successive month-over-month declines in both new installs and user spending, including a 32% drop in new downloads in December alone.
The shutdown comes ahead of an expected IPO, with OpenAI redirecting computing resources toward more lucrative coding, reasoning, and text-generation products. The company recently raised $110 billion in fresh funding, valuing it at around $730 billion.
Disney, which had agreed to license iconic characters including Mickey Mouse and Cinderella and take a $1 billion stake in OpenAI as part of a Sora-centered partnership, is also winding down the deal. In a statement, Disney said it “respects OpenAI’s decision to exit the video generation business” and will “continue to engage with AI platforms to find new ways to meet fans where they are.”
Other generative AI video platforms remain in service, with Google now positioned as essentially the only player in the space with scale.
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