OpenAI was banking on the video-generation platform to make money. The platform’s fall could augur more trouble.
OpenAI has unexpectedly shut down Sora, its generative AI video model. Despite a surge of initial popularity, the tech was dogged by controversy and copyright issues and proved prohibitively expensive.
In a significant blow to OpenAI, a $1 billion December 2025 deal to allow Sora users to generate AI videos featuring Disney characters was canceled at the same time Sora was jettisoned.
The company gave no reason for the shutdown of Sora, although analysts point to the dismal economics. With AI in the midst of what has all the…
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