OpenAI has shut down Sora, its high-profile AI video generator, and the decision is now affecting a major Hollywood partnership. According to The Information, Disney is backing away from a planned $1 billion investment in OpenAI after the closure of the product. Reports Rozetked.me.
OpenAI announced on March 24 that Sora would be discontinued, but did not explain why at the time. The Information reported that the company recently completed training its next major AI model, known internally as Spud. Closing the Sora app and delaying its integration into ChatGPT reportedly helped free up computing power for that new system.
The report also said OpenAI is reshaping its leadership structure. Chief executive Sam Altman is stepping back from direct oversight of the safety and security teams. Those groups are now led by Mark Chen and Greg Brockman, while Altman focuses on fundraising, supply chains and data center construction.
Although Sora’s app and API are being closed, OpenAI is not leaving AI video research entirely. The company is expected to continue work in the field, with more attention on long-term world simulation.
OpenAI and Disney had announced their partnership in December 2025. Disney was expected to license its characters for Sora and bring the technology into Disney+. With Sora now shut down, media reports say the studio no longer plans to proceed with the investment.
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