OpenAI has announced the shutdown of Sora, its AI-powered video generation app, effectively ending a planned $1 billion investment from Disney.
The decision follows concerns over intellectual property violations, misinformation risks, and the platform's high operational costs-estimated at $15 million per day. Sora, introduced in February 2024, evolved from a text-to-video tool into a social media-style platform allowing users to create and share AI-generated clips, including "cameos" using personal voice and likeness.
Despite initial excitement, legal experts warned Sora could replicate copyrighted characters from franchises like Frozen, Star Wars, and Marvel. Researchers also found it capable of generating convincing deepfakes, including fake footage of CEO Sam Altman in a cat suit.
Disney confirmed it respects OpenAI’s choice but will continue exploring responsible AI partnerships.
OpenAI has not yet disclosed timelines for shutting down the API or preserving user content.