OpenAI Shuts Down Sora, Disney Exits $1B AI Deal

What Happened On March 24, 2026, OpenAI made the surprise announcement that it is discontinuing Sora, its flagship AI video generation app that allowed users to create videos from text prompts. The decision comes just six months after the company launched the standalone Sora app with significant fanfare. The shutdown immediately killed OpenAI’s partnership with Disney, which had announced plans in December 2025 for a $1 billion investment in the AI company.