OpenAI has shut down its high-profile AI video-generation platform Sora, less than two years after its launch captured global attention for its ability to create realistic videos from simple text prompts.
The company has also cancelled its widely discussed $1bn partnership with entertainment giant Disney, marking a significant shift in its strategic priorities.
Shift towards robotics and advanced AI
OpenAI confirmed the move, stating it is discontinuing both the consumer app and professional platform for Sora to focus on other areas of artificial intelligence.
These include the development of “agentic” AI systems capable of performing tasks autonomously, as well as robotics aimed at solving real-world physical challenges.
The company added that the technology behind Sora would be repurposed to train advanced AI systems, particularly in robotics.
Disney partnership comes to an end
Disney said it respected OpenAI’s decision to step away from video-generation tools. The entertainment giant had previously agreed to allow limited use of its intellectual property—including iconic characters such as Mickey Mouse and Star Wars figures—in AI-generated content.
The deal, once seen as a landmark collaboration between Hollywood and the tech industry, had raised both excitement and concern over the future of creative industries.
Disney now plans to explore partnerships with other AI firms while ensuring intellectual property protections remain in place.
Struggles with monetisation and risks
Despite its viral success, Sora struggled to generate significant revenue. Industry data suggests the platform earned just $1.4 million in net in-app revenue, compared with billions generated by OpenAI’s flagship ChatGPT product.
Experts have described the platform as difficult to monetise, with high development costs and ongoing concerns over misuse.
Challenges included the creation of misleading or non-consensual content, as well as copyright issues—factors that increased regulatory and reputational risks.
Growing competition in AI video
Sora also faced rising competition from other AI video-generation platforms, including international rivals offering similar or even more controversial capabilities.
The rapid evolution of the sector made it harder for OpenAI to justify continued investment in a product with limited financial return.
A strategic reset
The closure of Sora signals a broader strategic reset for OpenAI as it prioritises scalability, profitability, and long-term innovation.
While the company is stepping away from AI video tools for now, it is doubling down on next-generation technologies that could have a more tangible impact—particularly in automation and robotics.
For the tech and media industries, the move underscores a key reality: not all groundbreaking AI innovations translate into sustainable business models.
