OpenAI Shuts Down Sora Video App After Six Months, Disney Deal Collapses

TLDR

• OpenAI is shutting down its AI video app Sora, just six months after launch
• CEO Sam Altman told staff all video model products are being wound down
• The Sora developer API and ChatGPT video features will also be cut
• A $1 billion Disney investment deal tied to Sora will not move forward
• OpenAI is refocusing on enterprise productivity tools and agentic AI

OpenAI is shutting down Sora, its text-to-video app, less than six months after it launched in September 2025. The company confirmed the closure in a post on X, saying it would share more details on timelines and how users can save their work.

CEO Sam Altman informed staff of the decision on Tuesday, according to The Wall Street Journal. He said OpenAI is winding down all products that use its video models.

Sora launched to a strong reception, pulling in one million downloads in just five days. Last month alone, data firm Sensor Tower estimated around 600,000 downloads.

Despite the early interest, Sora also attracted criticism. Concerns about deepfakes led OpenAI to crack down on some content after pressure from celebrities.

The app launched in September as a way for OpenAI to compete with short-form video platforms like TikTok and Instagram. That strategy is now being abandoned.

OpenAI Shifts Focus to Business Tools

Altman said the company is redirecting toward productivity tools for both enterprise clients and individual users. The Sora team will now focus on longer-term projects, including robotics.

OpenAI’s applications chief, Fidji Simo, told staff earlier this month they could not be distracted by “side quests.” The company is pushing toward agentic AI — systems that can work on their own to write code, analyze data, and carry out tasks on computers.

This shift comes as OpenAI faces growing questions about its business model. Costs are rising faster than revenue, despite the company reporting around one billion daily users worldwide.

Disney’s $1 Billion Deal Called Off

In December, Walt Disney signed a three-year licensing agreement with OpenAI. The deal gave Sora users access to over 200 characters from Marvel, Pixar, and Star Wars.

The deal also included a $1 billion equity investment in OpenAI. A Disney spokeswoman confirmed to The Wall Street Journal that the investment will not move forward.

A Disney spokesman said the company “respects OpenAI’s decision to exit the video generation business.” Disney said it will continue exploring AI partnerships elsewhere.

The collapse of the Disney deal removes one of OpenAI’s most high-profile commercial relationships tied to Sora.

The Sora developer API and video features inside ChatGPT are also set to be shut down, according to The Wall Street Journal.

OpenAI has not yet confirmed exact shutdown dates for the app or the API, but said more details are coming soon.

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