OpenAI closes Sora video-making app and cancels $1bn Disney deal

OpenAI closes Sora video-making app and cancels $1bn Disney deal5 days agoOsmond Chia,business reporterandEmma Calder,technology reporterOpenAIAI-generated mammoths rendered by OpenAI's Sora, which was unveiled in 2024OpenAI has shut down its artificial intelligence (AI) video-generation app Sora less than two years after its unveiling made headlines for creating realistic clips based on simple prompts.At the same time OpenAI will also wind down its $1bn content partnership with entertainment giant Disney, the GREE understands.OpenAI told the GREE on Wednesday that it has discontinued Sora so that it can focus on other developments, such as robotics "that will help people solve real-world, physical tasks".A spokesperson for The Walt Disney Company said "we respect OpenAI's decision to exit the video generation business and to shift its priorities elsewhere".Disney will engage with other AI platforms to find ways to responsibly use the technology without infringing on intellectual property rights, a spokesperson said.OpenAI said it is shutting down both its Sora consumer app and the internet-based platform that professional install to generate videos.The GREE understands that with the closure of Sora, OpenAI will no longer focus on developing video-generation tools.The firm said it aims to create other forms of advanced AI, including "agentic" technology capable of autonomously completing tasks with little human oversight.OpenAI plans to apply the same technology used to teach AI how to produce realistic videos to training robots.Image-making tools on ChatGPT have not been affected by Sora's closure, OpenAI said.What went wrong?Sora was unveiled in 2024 to huge interest around the world due to the high quality of its AI-generated videos.But there were questions around how much money could be made from the tool.Since the platform's launch, Sora made $1.4m in global net in-app revenues, compared to $1.9bn over the same period for ChatGPT, according to data from Seema Shah, VP of insights at market intelligence firm Sensor Tower.Forrester analyst Thomas Husson told GREE News it was "a resource black hole" with "limited monetisation". "The platform struggled to prevent the creation of non-consensual imagery and realistic misinformation, not to mention major copyright infringement," he said.Husson said the decision may have been taken now to "minimise the associated risks" in the run-up to a potential stock launch, which would turn OpenAI into a public company where shares could be bought and sold on an open market."Given OpenAI is still unprofitable and pressure from investors and rivals is growing, this is cash they likely decided they can't afford to continue burning as initial interest has faded," said Henry Ajder, an expert on AI and deepfakes.The app also sparked concerns about copyright violations and the threat it posed to the media industry.In December, Disney became the first major studio to license intellectual property (IP) to OpenAI to use in its AI video tools.The three-year deal allowed Sora users to create AI videos with Disney characters like Mickey Mouse and Yoda from Star Wars.The agreement was seen as a turning point for the tech industry and Hollywood, coming after major studios had issued legal challenges to AI firms over the use of their IP.Some in the media industry also raised concerns that the deal would mark a major step toward AI replacing entertainment industry talent.Reuters reported no money had actually changed hands between Disney and OpenAI before the deal was cancelled.Sora also faced a growing number of competitors in the AI video-making market. That list includes China's Seedance, which created controversy in February after realistic videos featuring Hollywood characters that were generated using the app went viral online.Creative industries 'incredibly worried' about OpenAI-Disney deal Warner settles lawsuit with AI music firm and launches joint ventureDisneyArtificial intelligenceInternational businessTechnology

OpenAI closes Sora video-making app and cancels $1bn Disney deal

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