OpenAI pulls the plug on Sora, ending $1 billion Disney deal in sudden pivot

Winners & losers: OpenAI is scrapping its Sora video-creation app and, in the process, abruptly ending its high-profile $1 billion partnership with Walt Disney Co. Announced Tuesday, the decision signals a sharp pivot as the ChatGPT maker refocuses on enterprise products, coding tools, and its broader push toward artificial general intelligence.

The decision stunned Disney executives, who just 30 minutes earlier had been meeting with OpenAI teams about Sora's future, according to a person familiar with the matter. "It was a big rug-pull," the person told Reuters, describing how the media giant learned of the shutdown moments before it became public.

For OpenAI, Sora's cancellation underscores a growing internal realignment ahead of a possible stock market debut later this year. The company is redirecting resources from consumer-facing projects toward offerings viewed as more commercially sustainable – and less computationally costly.

– shirish (@shiri_shh) March 24, 2026

Sora debuted early last ...