There’s some massive news in the AI world, as Disney was preparing to step into a deal with Sora, part of OpenAI.

©SORA

Back in December, Disney announced a new partnership with OpenAI for the company to become “the first major content licensing partner on Sora,” and we were preparing to see Disney step into the three-year licensing agreement. However, in a turn of events, Disney has now backed out of the OpenAI deal after the company announced its shut down of Sora.

According to The Hollywood Reporter, just months after Sora was launched, OpenAI will now shut down its Sora AI video app. In a statement announcing the change, the company stated, “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.”

©Getty Images

In response to this, a source familiar with the matter has stated that Disney is also exiting the deal it signed with OpenAI last year. Disney stated they would invest $1 billion in the company and agreed to license some of its characters for use in Sora. Now that Sora is no longer, while the company isn’t getting out of the AI video business, Disney will no longer be working with the company.

Disney CEO Josh D’Amaro

When Sora first launched back in 2025, it quickly had to backtrack after its launch and give Hollywood studios and talent more control over their IP and likenesses on the platform. This is an interesting turn of events, as Disney was planning to integrate the Sora technology into the tech into Disney+ itself. Now that they’re no longer part of this deal, the question remains if something similar will be added in the future.

©Disney

A Disney spokesperson is quoted saying, “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.”

We’ll continue to keep you updated on all the latest news regarding this news and other related updates, so stay tuned to DFB.

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