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OpenAI Shuts Down Sora, Losing $1 Billion Partnership with Disney

🛠️ AI Tools·Tom Levy·

OpenAI Shuts Down Sora, Losing $1 Billion Partnership with Disney

OpenAI Shuts Down Sora, Losing $1 Billion Partnership with Disney
Key Takeaways
1OpenAI announced the closure of Sora, its AI video application, without immediate explanation.
2The app, launched in October 2025, saw its downloads plummet from 3.3 million to 1.1 million in just a few months.
3The closure results in the loss of a three-year partnership with Disney, valued at one billion dollars.
💡Why it mattersOpenAI's decision to shut down Sora highlights the challenges of moderation and the financial stakes associated with emerging AI technologies.
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Full Analysis

OpenAI Abandons Its Sora App

OpenAI recently announced the shutdown of Sora, its application for sharing AI-generated videos. This announcement was made on X, without providing detailed explanations for the reasons behind this decision. However, OpenAI did specify that additional information would be shared soon, particularly regarding the timeline for the app and API shutdown, as well as how users' creations will be preserved.

A Shutdown That Erases a Billion-Dollar Deal

The Sora app lasted only six months. Launched with great fanfare in October 2025 alongside the Sora 2 model, it offered a feed of personalized videos similar to TikTok, but generated by AI. The question arises whether this shutdown represents a significant loss for users. According to data from Appfigures reported by TechCrunch, the app peaked at 3.3 million downloads in November 2025, before dropping to 1.1 million in February 2026.

For OpenAI, the consequences of this shutdown could be more significant. Although in-app purchases generated around $2.1 million during its operational period, it is primarily the loss of the partnership with The Walt Disney Company that could be felt. This licensing agreement, intended to last three years, allowed users to generate videos featuring characters from the Disney, Marvel, Pixar, and Star Wars universes. In exchange, Disney was set to invest one billion dollars in OpenAI, with the possibility of receiving warrants for additional shares.

Reactions and Moderation Challenges

"As the emerging field of AI evolves rapidly, we respect OpenAI's decision to withdraw from the video generation sector and refocus its priorities elsewhere. [...] We will continue to work with AI platforms to find new ways to engage with fans where they are, while responsibly adopting new technologies that respect intellectual property and creators' rights," said a Disney spokesperson to Variety.

Sora faced significant moderation issues right from its launch. Despite the safeguards announced by OpenAI, deepfakes of public figures quickly circulated on the platform. In France, the experiment conducted by YouTuber Tibo InShape illustrated the potential pitfalls. After opening his profile to the public, he found himself confronted with a proliferation of problematic videos using his image without his consent.

A Trajectory Similar to Meta Vibes

The trajectory of Sora resembles that of Meta Vibes, Meta's AI video generator integrated into the Meta AI app. As previously analyzed, Vibes struggled to find its audience despite significant investments, with only 2 million daily active users in November 2025. Unlike OpenAI, however, Meta is persisting and preparing a standalone application.

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