OpenAI will shut down its Sora tool

Samantha Masunaga, Los Angeles Times on Mar 24, 2026

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OpenAI plans to shut down its Sora text-to-video tool, a stunning move that comes three months after Walt Disney Co. pledged to invest $1 billion in the artificial intelligence company and allow the use of dozens of beloved characters.

The San Francisco-based company did not disclose why it was shutting down the tool or the timeline for its phase-out. In a post Tuesday on the Sora account on X, the company said it knew the news was “disappointing.”

“To everyone who created with Sora, shared it, and built community around it: thank you,” the post said.

Open AI’s pivot comes as the company still was engaged in discussions with Disney to formalize their arrangement — but no deal had been reached, according to a source familiar with the matter who was not authorized to comment.

Although Disney had pledged to make the huge investment, the company had not yet made any payments to OpenAI, this person said. OpenAI also had not paid any fees to license Disney characters.

A Disney spokesperson said in a statement that the company respected OpenAI’s decision to shift its priorities away from video generation.

“We appreciate the constructive collaboration between our teams and what we learned from it, and 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 said.

The emergence of Sora had roiled Hollywood, particularly as AI and compensation for actors’ likeness and voice became a central issue in the 2023 strike.

Performers guild SAG-AFTRA had said at the time of the Disney-OpenAI announcement that it would “closely monitor the deal and its implementation to ensure compliance with our contracts and with applicable laws protecting image, voice, and likeness.”

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(LA Times staff writer Meg James contributed reporting.)

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