OpenAI Shuts Down Sora, Disney Withdraws Investment! From Viral Sensation to Angering Japan, a Generation of Video Generation App Comes to an End

OpenAI closes the Sora App, which was online for only half a year, and its $1 billion partnership with Disney falls through. Due to serious copyright disputes over generated videos in the US and Japan, the team will shift focus to AI programming and desktop applications in the future.

Sora App suddenly shut down, Disney’s $1 billion partnership falls apart

ChatGPT developer OpenAI suddenly announced it will shut down the once-popular video generation tool Sora App, which was on the market for only six months.

According to The Wall Street Journal, OpenAI CEO Sam Altman has informed employees that Sora App and developer API access will be completely discontinued, and there are no current plans to integrate this feature into ChatGPT.

The Hollywood Reporter also revealed that Disney’s agreement to invest up to $1 billion in OpenAI last December is also coming to an end. The original deal would have allowed Sora users to create with Disney characters and planned to upload AI-generated videos to Disney+ streaming platform.

In response, a Disney spokesperson stated that they respect OpenAI’s decision to exit the video generation business and will shift their focus to other areas.

• Related report: Disney signs licensing agreement with OpenAI! Invests $1 billion and acquires equity, Mickey Mouse can legally land on Sora**

From invitation codes to copyright disputes, Sora sparks backlash from rights holders

When Sora App first launched, it used an invite-only system, which caused a rush of users trying to register. According to Appfigures, Sora reached its peak downloads in November 2025, with approximately 3.33 million downloads across iOS and Google Play, and in-app purchase revenue estimated at around $2.1 million.

However, when Sora 2 model was released in September 2025, its realistic generation capabilities triggered significant copyright controversies.

Not only did Hollywood studios and the US actors’ union voice concerns, but disputes in Japan also intensified. The Japanese government called on OpenAI to avoid copyright infringement, and Shueisha, owner of the “Demon Slayer” rights, along with 17 publishers, issued a statement demanding concrete measures to prevent violations.

The Japan Content Overseas Distribution Association (CODA), representing 36 companies including Studio Ghibli, formally wrote to OpenAI, requesting a complete halt to unauthorized AI training.

Image source: CODA, representing 36 companies including Studio Ghibli, has sent a letter to OpenAI demanding a complete stop to unauthorized AI training.

Sora 2 model remains, OpenAI shifts strategy to AI programming

If Sora App had continued to grow, OpenAI might have kept it running, but by February 2026, downloads had fallen to 1.1287 million. While this seems large, it’s very small compared to ChatGPT’s 900 million weekly active users.

Foreign media outlet TechCrunch believes that although Sora App is closed, the underlying Sora 2 AI video generation model still exists, possibly hidden behind ChatGPT’s paywall, and it’s only a matter of time before a new community AI video app emerges.

OpenAI has not officially responded or explained the shutdown of Sora App. However, according to The Verge, several months ago Altman issued a red alert regarding the competition between ChatGPT and Google Gemini, indicating internal adjustments are already underway.

• Related report: Gemini 3 under pressure? Rumors say OpenAI has issued a red alert: focusing on refining GPT, new model to be released next week**

The Wall Street Journal also reported last week that OpenAI is working on a desktop super-application for ChatGPT, aiming to streamline its product line around Codex and its AI browser.

Senior executive Fidji Simo posted on social media that OpenAI is going through a phase of exploration and refocusing. When new investments like Codex start to show results, it’s crucial to double down and avoid distractions.