OpenAI Shutters Sora, Scraps Disney $1 Billion Deal
OpenAI will discontinue Sora and its API, ending a planned $1 billion Disney investment and shifting resources toward enterprise AI, robotics research and an upcoming model called Spud.
Overview
OpenAI said Tuesday it would discontinue Sora, its AI video app, and shut the Sora API, roughly six months after the app's launch.
The decision ended a planned three-year licensing deal and a reported $1 billion Disney investment, and Disney said it no longer plans to invest.
Disney said it was blindsided by the move, some Sora staffers were reportedly caught off guard, and OpenAI CFO Sarah Friar said the company must be ready to be a public company.
Sora downloads fell from 3.3 million in November 2025 to 1.1 million by February 2026, and Forbes estimated OpenAI spent about $15 million a day producing videos.
OpenAI said it will redeploy Sora researchers to 'world simulation' robotics research, focus on enterprise products like Codex, build a 'super app' and pursue a model called 'Spud' as it readies for a public offering.
Analysis
Center-leaning sources frame the shutdown primarily as a financial and strategic decision, foregrounding cost figures (Forbes' $15M/day) and the lost Disney deal while highlighting competitive and IPO motives. Editorial choices—loaded words like 'unnerved,' emphasis on expenses, and omission of creator or regulatory views—produce a business-centered narrative.
FAQ
OpenAI discontinued Sora due to declining downloads from 3.3 million in November 2025 to 1.1 million by February 2026, high costs of about $15 million per day for video production, and a strategic pivot to enterprise AI, robotics, and preparation for a public offering.
The planned three-year licensing deal and $1 billion Disney investment in Sora has ended, with Disney stating it no longer plans to invest and was blindsided by OpenAI's decision.
OpenAI is redeploying Sora researchers to 'world simulation' robotics research, emphasizing enterprise products like Codex, building a 'super app', and developing a new model called 'Spud', while preparing for a public company transition.
Spud is an upcoming AI model that OpenAI is pursuing as part of its shift in resources from Sora, though specific details on its capabilities or release are not yet available.
OpenAI is expanding its robotics lab with around 100 workers collecting data for household tasks, planning a second lab, and focusing on enterprise AI adoption including workflow automation and AI agents, supported by rapid compute growth and $20 billion ARR.
