OpenAI Shuts Down Sora and Ends Billion-Dollar Disney Partnership

OpenAI is shutting down Sora, its AI video generation tool, and ending the partnership with Disney that was signed in December 2025. The move represents a major strategic retreat from AI video generation. Sora launched to significant fanfare but faced persistent quality issues and competition from dedicated video AI startups. Disney had committed to integrating Sora into its production pipeline. The simultaneous shutdown and partnership termination suggest fundamental challenges with the underlying technology rather than a temporary pause.