ChatGPT maker OpenAI has announced that it will shut down its AI video-generation platform Sora. In a social media post, the company said it will soon share details on the timeline for the complete shutdown of the Sora app and its API, which is widely used by developers. It also indicated that ChatGPT will no longer support video generation.
What is Sora?
OpenAI launched Sora in early 2024 as a text-to-video generation tool capable of creating high-quality, film-like clips. The app quickly went viral in available markets, with users generating a large number of AI videos. Sora head Bill Peebles had earlier said that the surge in usage was so high that it was “melting” the company’s GPUs, prompting OpenAI to impose usage limits.
Sora’s video models are believed to require significant computing power, which OpenAI now plans to redirect toward productivity-focused tools. The company is also facing rising competition from Anthropic, especially in the enterprise segment.
Reports suggest OpenAI could incur losses of over $14 billion this year and is actively seeking more investment. It is also exploring new offerings for investors and may consider going public later this year. The company is led by Sam Altman.
Why is Sora being shut down?
According to reports, the decision came shortly after a meeting with Disney, which had earlier agreed to invest $1 billion in OpenAI. The investment would have allowed Sora to use over 200 Disney characters, including those from Marvel and Star Wars.
OpenAI’s decision to shut down Sora reportedly surprised Disney. No money is believed to have been exchanged under the deal. A spokesperson told Reuters that the move was a “big rug-pull.” Disney had planned to integrate Sora-generated content into platforms like Disney+ and explore wider use of OpenAI’s tools for creative and storytelling purposes.
What’s next for OpenAI?
OpenAI is now working on a “super app” that will combine ChatGPT, Codex, and its AI browser Atlas into a single platform to strengthen its position among both enterprise and individual users.
The company is also focusing on agentic AI systems, building on developments like OpenClaw—an open-source platform that allows users to run AI agents locally. Its creator, Peter Steinberger, has joined OpenAI.