OpenAI has discontinued its Sora text-to-video app, leading to the collapse of Disney’s planned $1 billion investment in the company. The agreement, first discussed in December 2025, involved Disney licensing over 200 characters from its franchises, including Disney, Marvel, and Star Wars, for Sora videos. OpenAI confirmed the app’s closure in a statement, thanking users for their contributions and expressing disappointment over the news. As OpenAI shifts its focus towards a broader mega-app strategy and other research areas, the licensing arrangement with Disney will end. Disney, now led by Josh D’Amaro, acknowledged OpenAI’s decision and emphasized the importance of responsibly leveraging AI technologies. This partnership was anticipated to merge Hollywood IP with generative AI, enabling users to create videos featuring beloved characters. The move reflects OpenAI’s strategy to streamline its offerings amid heightened competition in AI video generation.
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