The post OpenAI to Shut Down Sora Video App, Derailing $1 Billion Deal with Disney appeared on BitcoinEthereumNews.com.

In brief OpenAI says it will shut down the Sora AI video-generation app and API. Sora evolved from a text‑to‑video tool tied to ChatGPT into a full‑blown social video platform. The shutdown also appears to end a reported $1 billion Disney investment tied to licensing major characters. OpenAI said Tuesday that it will shut down Sora, its AI video-generation platform, discontinuing an app that allowed users to create short videos from text prompts. The decision ends the company’s standalone generative video product and appears to disrupt a planned entertainment partnership tied to the technology. “We’re saying goodbye to the Sora app,” the Sora team posted on X. “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.”  OpenAI said it will share more information soon, including timelines for shutting down the app and its API and details on how users can preserve their work. The fallout from OpenAI’s announcement has been swift. A proposed $1 billion investment from Disney connected to Sora is no longer moving forward after OpenAI announced it would shut down the app, according to a report by Deadline. OpenAI first introduced Sora in February 2024 as a text‑to‑video model that could turn written prompts into short clips. The company later expanded the technology with Sora 2, a more advanced model released alongside a standalone Sora mobile app. While OpenAI’s entry into video generation was highly anticipated, it became a consistent money drain for the company, reportedly costing about $15 million per day. The Sora iOS app introduced a social-style video feed where users could generate and share AI-created clips. It also included “cameos,” a feature that allowed users to insert themselves into AI-generated scenes after recording a…

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Filed under: News - @ March 24, 2026 11:25 pm