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Disney Pulls Out of $1b Deal as OpenAI Shuts Controversial AI Video Generator App Sora

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Date Published
25 Mar 2026
Priority Score
2
Australian
Yes
Created
25 Mar 2026, 10:00 am

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<p>"What you made with Sora mattered, and we know this news is disappointing."</p>

Summary

This report details OpenAI's abrupt discontinuation of its Sora video generation platform, a move that terminates a major $1 billion commercial partnership with Disney. The closure follows intense scrutiny regarding the proliferation of realistic deepfakes, copyright concerns involving public figures, and the potential for large-scale misinformation. While primarily a commercial shift, the development highlights the significant safety and ethical challenges inherent in frontier synthetic media capabilities that complicate global governance of generative AI.

Body

OpenAI is pulling the plug on the viral AI video generator Sora, just three months after agreeing to a $1 billion agreement with Disney.In a short message posted to X, OpenAI said it is "saying goodbye to the Sora app" and that it will share more information soon, including details on how people who used the app can preserve the videos they have already created."What you made with Sora mattered, and we know this news is disappointing," the post said.READ MORE: Thousands of ABC staff walk off the job in 20-year first as BBC replaces showsOpenAI has grown massively since being founded in late 2015. (AP)Sora was released in September last year and rapidly grew in popularity on social media, being used to create artificially generated lifelike videos that often left people questioning whether the content was real.The confusion led many experts and advocacy groups to express concern about the risks the app poses by simply typing a prompt.Many warned that it could lead to the proliferation of nonconsensual images and realistic deepfakes in a sea of "AI slop".After outcry from family estates and an actors' union, OpenAI was forced to crack down on AI creations of public figures, including Michael Jackson and Martin Luther King Jr., doing outlandish things.Disney agreed to a $1 billion three-year deal with OpenAI last year to bring more than 200 of its characters to Sora, aiming to allow users to generate short, user-prompted social videos.READ MORE: K'gari fuel station owner defends charging $4.25 per litre for dieselThe deal would have seen more than 200 Disney characters brought to the AI video generator app. (Supplied/Disney)The entertainment company said in a statement that it respects "OpenAI's decision to exit the video generation business and to shift its priorities elsewhere""We appreciate the constructive collaboration between our teams and what we learned from it," Disney said in a statement."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."NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.Download the 9NEWS App here via Apple and Google PlayMake 9News your preferred source on Google by ticking this box hereSign up to our breaking newsletter here