OpenAI just gave up on Sora and its billion-dollar Disney deal | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentAIExpandOpenAIAnthropicSee all AIPolicyExpandAntitrustPoliticsLawSecuritySee all policyGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersArchivesStoreVerge Product UpdatesSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.OpenAI just gave up on Sora and its billion-dollar Disney dealComments DrawerCommentsLoading commentsGetting the conversation ready...AICloseAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AINewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsStreamingCloseStreamingPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All StreamingOpenAI just gave up on Sora and its billion-dollar Disney dealOpenAI’s video generator is going away soon, despite a lot of hype and a megadeal with Disney.OpenAI’s video generator is going away soon, despite a lot of hype and a megadeal with Disney.by Richard LawlerCloseRichard LawlerSenior News EditorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Richard LawlerMar 24, 2026, 9:08 PM UTCLinkShareGiftA frame from a Sora 2-generated video. Image: OpenAIPart OfFrom ChatGPT to Gemini: how AI is rewriting the internetsee all updates Richard LawlerCloseRichard LawlerPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Richard Lawler is a senior editor following news across tech, culture, policy, and entertainment. He joined The Verge in 2021 after several years covering news at Engadget.On Tuesday afternoon, OpenAI announced “We’re saying goodbye to Sora,” the video generation tool that it launched at the end of 2024, and centered in a massive licensing deal with Disney only a few months ago. The Wall Street Journal reported the move earlier, saying that OpenAI boss Sam Altman had informed staff that both the TikTok-like Sora app and API access for developers would be discontinued, with no plans to roll the feature into ChatGPT as had previously been rumored.According to The Hollywood Reporter, as a result, the deal Disney announced in December, saying it would invest $1 billion in OpenAI, license its characters for use within Sora, and send AI-generated videos into Disney Plus, is also coming to an end.Sora:We’re saying goodbye to Sora. 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.We’ll share more soon, including timelines for the app and API and details on preserving your work. – The Sora TeamOpenAI hasn’t responded to a request for comment or otherwise explained the shift, but there have been signs that things are changing, following Altman’s declaration of a “code red” a few months ago over possible slippage of ChatGPT vs. Google Gemini.Last week, the WSJ reported OpenAI is working on a ChatGPT desktop “superapp” to simplify its product lineup around Codex and its AI browser, which applications CEO Fidji Simo commented on, tweeting, “Companies go through phases of exploration and phases of refocus; both are critical. But when new bets start to work, like we’re seeing now with Codex, it’s very important to double down on them and avoid distractions. Really glad we’re seizing this moment.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Richard LawlerCloseRichard LawlerSenior News EditorPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Richard LawlerAICloseAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AIDisneyCloseDisneyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All DisneyNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsOpenAICloseOpenAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All OpenAIStreamingCloseStreamingPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All StreamingMore in: From ChatGPT to Gemini: how AI is rewriting the internetGoogle’s new Pixel 10 ads made me go ‘Wait, WHAT are they trying to sell?’Sean HollisterMar 23Now everyone in the US is getting Google’s personalized Gemini AIStevie BonifieldMar 17One of Grammarly’s ‘experts’ is suing the company over its identity-stealing AI featureStevie BonifieldMar 11Most PopularMost PopularNvidia CEO Jensen Huang says ‘I think we’ve achieved AGI’The US government just banned consumer routers made outside the USDonut Lab’s solid-state battery could barely hold a charge after getting damagedWelp, I bought an iPhone againAyaneo says selling its Windows gaming handheld ‘is no longer sustainable’The Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. 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OpenAI’s abrupt decision to discontinue its Sora video generation tool, alongside the associated $1 billion investment deal with Disney, represents a significant shift in the company’s strategic direction, driven primarily by internal reassessments of resource allocation and a perceived need for greater focus. According to reports, including initial announcements from OpenAI and subsequent confirmations from publications like *The Wall Street Journal* and *The Hollywood Reporter*, CEO Sam Altman initiated a process of winding down the Sora project and dissolving the partnership with Disney, signaling a strategic recalibration following what Altman described as a “code red” situation related to competitive pressures against Google’s Gemini. This decision followed a period of considerable hype surrounding Sora’s potential, particularly its ability to generate photorealistic video content, and a licensing agreement that was intended to integrate Disney’s characters into the technology.

The underlying rationale appears to be a recognition of the substantial resource demands associated with Sora’s development, coupled with a need to prioritize existing technologies. Altman’s reported declaration of a “code red,” suggests a rapid and urgent response to concerns about Sora’s progress relative to competing AI models, specifically Google’s Gemini. This prompted a shift in focus towards core technologies like Codex and its AI browser, as highlighted in a subsequent tweet from Fidji Simo, OpenAI’s CEO, emphasizing the importance of doubling down on demonstrable successes. The decision to curtail Sora effectively redirects resources to the development of the ChatGPT desktop “superapp,” intended to consolidate OpenAI’s offerings around Codex and its AI browser.

The termination of the Disney deal, valued at $1 billion, is directly linked to this shift. The initial agreement outlined Disney’s investment in OpenAI, the licensing of its character IP for Sora, and a planned integration of AI-generated videos into Disney Plus. However, as OpenAI pivots away from Sora, the rationale for this large-scale investment vanishes, leading to its termination. This reflects a broader trend in the tech industry, where companies are increasingly evaluating the return on investment for ambitious, exploratory projects and concentrating on technologies demonstrating immediate commercial viability. The decision underscores the volatile nature of the rapidly evolving AI landscape and the pressure on companies to demonstrate tangible progress and secure funding. Ultimately, OpenAI’s move demonstrates a strategic retreat from a high-risk, high-reward venture, prioritizing a more refined and focused approach to its core technological strengths.