OpenAI has discontinued its Sora generative video application just months after its launch, prompting The Walt Disney Co. to withdraw from a previously announced $1 billion investment and licensing agreement, the company said Tuesday, March 24, 2026. The move marks a significant shift in OpenAI’s strategy as it steps away from the video generation sector following mounting legal and regulatory concerns.
OpenAI confirmed the shutdown in a statement shared through Sora’s official social media channels, thanking users while acknowledging the disappointment surrounding the decision. “We’re saying goodbye to the Sora app,” the statement read. “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.” The company said it will provide additional details regarding timelines for the app, its API and options for preserving user-created content.
The closure comes amid growing scrutiny over the platform’s capabilities and its potential impact on intellectual property rights. Sora gained widespread attention with the release of its updated version, often referred to as Sora 2, in September 2025. The technology allowed users to generate highly realistic video content, including simulations of well-known characters and public figures, raising concerns across the entertainment industry.
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">We’re saying goodbye to the Sora app. 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.<br><br>We’ll share more soon, including timelines for the app and API and details on…</p>— Sora (@soraofficialapp) <a href="https://twitter.com/soraofficialapp/status/2036546752535470382?ref_src=twsrc%5Etfw">March 24, 2026</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Industry groups and regulators were quick to respond. The Japanese government urged OpenAI to ensure its technology does not enable copyright infringement, while the Japan Commercial Broadcasters’ Association warned that unauthorized use of anime intellectual property could threaten the country’s content production ecosystem. Similar concerns were echoed globally, with film studios and streaming companies closely monitoring the platform’s use.
Labor organizations also voiced opposition. SAG-AFTRA criticized the technology for enabling the use of actors’ likenesses and voices without compensation or consent, highlighting broader concerns about the role of artificial intelligence in creative industries. The rapid spread of user-generated videos featuring recognizable figures intensified calls for clearer protections and enforcement mechanisms.
Disney’s decision to exit its agreement with OpenAI underscores the challenges facing partnerships between technology firms and traditional media companies. The deal, announced last year, would have allowed Sora users to generate content using characters from major Disney-owned franchises, including Marvel, Star Wars, Pixar and Disney Animation, while excluding the use of actors’ likenesses and voices.
In a statement to The Hollywood Reporter, a Disney spokesperson said the company respects OpenAI’s decision to step back from the video generation business. “We appreciate the constructive collaboration between our teams and what we learned from it,” the spokesperson said. “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.”
The spokesperson added that Disney remains open to exploring future partnerships with other artificial intelligence companies as the technology continues to evolve.
The original agreement between the two companies emphasized a shared commitment to responsible AI use, including safeguards for user safety and the protection of intellectual property. However, the rapid advancement of generative video tools and the legal uncertainties surrounding their use appear to have complicated those efforts.
OpenAI has not provided specific reasons for shutting down Sora beyond its public statement but indicated it will shift focus to other areas of development. The decision highlights the growing tension between innovation in artificial intelligence and the regulatory frameworks governing creative content.
As the AI landscape continues to evolve, the closure of Sora reflects the broader challenges facing companies attempting to balance technological advancement with legal, ethical and industry concerns.