OpenAI is shutting down its Sora app while Disney withdraws $1 billion investment

In a move that came out of nowhere, OpenAI announced on X that it will shut down its Sora AI video generation app and its associated API. The company did not mention any dates for Sora's official termination, but that information will apparently be available soon.

"We're saying goodbye to the Sora app. To everyone who created with Sora, shared it, and built a community around it: thank you. What you made with Sora mattered, and we know this news is disappointing. We'll share more soon, including timelines for the app and API and details on preserving your work."

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- The Sora Team via X

Sora burst onto the scene with real promise when it debuted, but interest in the video-generation app gradually fizzled out. A major factor in the declining popularity of Sora and similar programs was the negative connotation that was quickly attached to AI-generated videos.

While impressive at first, AI-generated videos began to be labeled "slop" on social media, as much of the content produced by apps such as Sora was of poor quality and lacked personality. Analytics for the Sora app also point to a declining user base month over month since its debut, highlighted by a 32% decline in new downloads in November 2025.

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The declining user interest was not the only factor in OpenAI's decision. Recently, OpenAI seems to have shifted its focus from video generation to enterprise applications like coding and data analysis. Moreover, OpenAI faced backlash and legal action from several publishers, including Namco, Square Enix, and Nintendo, over the use of their copyrighted characters in AI-generated videos.

In view of OpenAI's decision to shut down Sora and likely pivot away from video generation, Disney has withdrawn its $1 billion investment it had pledged last year. A Disney spokesperson gave a statement to The Hollywood Reporter regarding the matter.

"As the nascent AI field advances rapidly, we respect 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, and 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."

- Disney spokesperson to The Hollywood Reporter

It will be interesting to see if OpenAI's pivot towards enterprise solutions pays off in the long run. Some tech enthusiasts also see this as the first domino to fall in the eventual "bursting of the AI bubble" that everyone seems excited about. Nevertheless, don't think Sora's demise will lead to less AI slop on your Facebook feed anytime soon.