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OpenAI shuts down video creation tool Sora, Disney pulls $1 billion deal

It seems one of the world's biggest AI companies is stepping away from video generation.
Alex Hopley Editor UK 25 March 2026

OpenAI, the company behind the ever-famous ChatGPT, is shutting down its AI video creation platform Sora. The company announced the end of Sora just last night, thanking its userbase for taking part, and assuring them there are plans in the works for preserving what people made using Sora.

https://x.com/soraofficialapp/status/2036546752535470382

Following the shut down of Sora, it was revealed via The Holllywood Reporter that Disney was pulling out of its $1 billion investment with OpenAI. Unsurprisingly, this deal relied a lot on Sora, as the model would have been granted permission to use Disney characters from Star Wars, Marvel, and other IPs. If Sora is shutting down, though, we can understand why Disney doesn't want to spend $1 billion on it.

This doesn't mean Disney is backing down on AI, nor does it mean an end to AI-generated slop videos you'll see on your feed. Elon Musk has already made a statement saying he's "doubling down" and that the next release of Grok's video platform Imagine will be "epic."

https://x.com/elonmusk/status/2036693879270064369

So, those who are hoping every day the AI bubble bursts may be pleased to know one major video platform has met its end, but those still wanting to generate slop to their hearts' content can do so with ease via other platforms.

Editor UK Alex Hopley covered the video game industry for Gamereactor, from new announcements and launches to the business behind them. He also wrote on tech, film and entertainment, and his coverage wasn't tied to any one region.
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