Disney reportedly pulls out of OpenAI deal after Sora shutdown
Tuesday, March 24, 2026 at 10:54PM OpenAI has announced it will shutter its Sora AI video app a few months after its launch. Consequently, Disney is reportedly withdrawing from its deal with OpenAI, The Hollywood Reporter wrote. The entertainment giant agreed to license the use of some of its characters in Sora and committed to investing US$1 billion in the company, a source told the news outlet. The objective behind the deal was to integrate OpenAI's tech into Disney+. However, with the app gone, it doesn't necessarily mean the technology goes away, so Disney could potentially enter a deal with another AI company.
The Hollywood Reporter noted comments from a Disney spokesperson. “As the nascent AI field advances rapidly, we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere,” the spokesperson said. “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.”
