OpenAI is reportedly shutting down its Sora video-generation tool, less than two years after it first drew widespread attention. Sora was introduced in 2024 as a way to create realistic video clips from simple text prompts. Early demos generated a lot of buzz, especially around how quickly the quality seemed to improve.
But that momentum didn’t quite translate into long-term traction. OpenAI has now announced that it plans to step back from video generation and focus more on areas like robotics and so-called “agentic” AI.
That said, the situation around Sora isn’t a clean, immediate shutdown. While OpenAI has indicated that it is discontinuing the app and winding down development, the tool hasn’t disappeared overnight. The web version, for instance, is still accessible for now, and there’s no clearly defined cutoff date yet. It suggests Sora is in a transition phase—no longer a priority, but not fully offline either.
The shift isn’t just about the product itself. OpenAI is also walking away from a major content partnership with The Walt Disney Company, which had been announced only a few months ago. The deal, reportedly worth around $1 billion, would have allowed Sora users to generate videos featuring well-known Disney characters.
According to reports, the agreement hadn’t progressed far enough for any payments to be made, and Disney was caught somewhat off guard by the decision. The company has since said it will continue exploring AI partnerships elsewhere, while keeping a close eye on how its intellectual property is used.
Sora’s commercial performance may have played a role here. Despite the initial excitement, the platform reportedly brought in around $1.4 million in global in-app revenue—a relatively small figure compared to ChatGPT’s $1.9 billion over a similar period. There were also ongoing concerns around moderation, including misuse involving deepfakes, copyrighted content, and non-consensual imagery.
At the same time, competition in the space has been heating up, with new tools emerging from other companies. Combined with legal risks and rising infrastructure costs, continuing Sora may have been harder to justify.
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