Particle.news
Download on the App Store

OpenAI Shuts Sora Video App as Disney Walks Away From $1 Billion Deal

The company says scarce computing power is being moved to higher-priority systems with clearer paths to revenue.

Overview

  • OpenAI said Tuesday it will close the Sora app and its developer API, with timelines and instructions to save user videos coming soon.
  • Disney confirmed it will not proceed with its planned $1 billion equity and licensing agreement linked to Sora, and reports say no money changed hands.
  • OpenAI says the Sora team will shift to world‑simulation research for robotics and to agent tools that can plan and carry out tasks on computers.
  • Executives and reports point to economics as a key factor, since video generation soaks up far more processing power than text or images while bringing in little direct revenue.
  • Researchers say the shutdown will not slow AI video online because tools from Google Veo, Runway, Luma and Seedance remain available, which could also mean fewer guardrails for some users.