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OpenAI Shuts Down Sora Video Platform, Cancels Multi-Billion Dollar Disney Deal
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In a sign of tougher conditions, OpenAI cancels a landmark deal to focus on its core business

SAN FRANCISCO: OpenAI, the creator of ChatGPT, has officially shuttered Sora, its high-profile AI video-generation platform, less than two years after its debut. The sudden move, which includes the termination of a $1 billion content partnership with Disney, marks a sharp pivot for the company toward robotics and specialized AI agents.

Sora was hailed as a breakthrough when it first appeared in 2024, capable of generating hyper-realistic video clips from simple text prompts. However, the technology proved to be a "resource black hole" with "limited monetization," according to industry analysts. Data from Sensor Tower indicates that Sora generated only $1.4 million in net revenue compared to the nearly $2 billion pulled in by ChatGPT.

OpenAI executives reportedly signaled earlier in the month that the company could no longer afford to be distracted by "side quests." Fidji Simo, an executive at OpenAI, told staff that the firm must prioritize productivity across its core business. "We cannot miss this moment because we are distracted by side quests," she stated in a recent internal memo.

The collapse of the Disney deal is particularly notable. The agreement would have allowed Sora users to incorporate iconic characters from Star Wars and Marvel into their AI-generated content. A Disney spokesperson expressed respect for the decision, noting, "We respect OpenAI's decision to exit the video-generation business and to shift its priorities elsewhere."

Meanwhile, OpenAI is already moving to apply Sora's research to its robotics division, aiming to develop AI capable of navigating the physical world more effectively. The withdrawal comes as OpenAI faces mounting pressure from investors and intensifying competition from rivals like Google and Kling.