OpenAI to Shut Down Sora App, Bringing Disney Deal to an End

OpenAI has announced that it will be shutting down its Sora AI video app, which also means the previously announced deal with The Walt Disney Company is dead.

What's Happening:

• Back in December, Disney and OpenAI announced an agreement that would have made the Mouse House the first major content licensing partner for OpenAI's Sora app.
• The three year licensing agreement was set to allow Sora users to generate short-form videos based on prompts, which would have included Disney characters.
• Also as part of this deal, Disney+ users would have been able to watch a curated collection of Sora-generated videos on Disney+.
• All in all, Disney was poised to invest $1 billion in OpenAI as an equity investment.
• Sora itself only launched last fall, but in a surprise move, Open AI has announced they will be shutting down the app, according to The Hollywood Reporter.
• The company released the following statement: “We’re saying goodbye to Sora. 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. We’ll share more soon, including timelines for the app and API and details on preserving your work.”
• Disney confirmed their exit from the deal in a separate statement: “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.”
• It will definitely be interesting to see if Disney strikes a deal with another AI giant, or leaves this as a footnote in the ever-changing world of AI.

Josh D'Amaro's First Shareholders Meeting as CEO:

• Last week, the 2026 Walt Disney Company Annual Meeting of Shareholders was held.
• This event always garners attention for its ability to potentially generate news and announcements, but felt more monumental the time, as it marked the passing of the torch from Bob Iger to Josh D'Amaro, as D'Amaro takes over as the new CEO.
• From seeing both of those men take their turns speaking about what Disney means to them, to release date announcements, a Disney Cruise Line name announcement, and more, we break down what stood out from the Shareholders meeting.