The planned $1 billion investment by Disney in OpenAI has collapsed after the AI company decided to shut down its text-to-video tool, Sora.
Led by Sam Altman, OpenAI confirmed that the deal would not move forward, and reports indicate that no funds were ever exchanged as the agreement was never finalized.
The partnership was expected to allow OpenAI to license around 250 Disney characters, including those from Frozen, Star Wars, and Marvel, for use in AI-generated videos. Although Sora is still temporarily operational, its shutdown effectively ends the collaboration.
Disney responded by acknowledging the rapid evolution of the AI space and stated that it will continue exploring new opportunities in the field while protecting intellectual property and creators’ rights.
“We’re saying goodbye to Sora,” the company declared online. “To everyone who created with it, shared it, and built community around it: thank you,” OpenAI added, reducing its so-called game changer to “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.”
