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💀 OpenAI is shutting down its video platform, Sora, to refocus on productivity tools
💰 The closure means OpenAI loses its $1 billion, three-year licensing deal with Disney, which allowed exclusive use of its IP
📉 Sora was computationally expensive to run, contributing to OpenAI’s unsustainable operating costs
🤖 The move is part of an effort to address existential challenges as rivals like Claude, Gemini, and Grok catch up to the company’s leading AI models
OpenAI, the company behind ChatGPT and Sora, has announced it is shutting down its video platform that made quite a splash last year.
Sora debuted in September last year, but has since been eclipsed by several other AI video platforms.
That didn’t stop Disney from striking up a $1 billion deal to let Sora use its famed IP, but CEO Sam Altman just announced that OpenAI is discontinuing the video platform as it looks to refocus its business model.
As reported by the Wall Street Journal, the decision to shutter Sora is part of a shift to “redirect the company’s resources and top talent towards so-called productivity tools.”
Sora reportedly required a lot of OpenAI’s computational resources to run, though the decision has shocked many, especially as it means the three-year licensing deal OpenAI struck with Disney is dead.
A Disney spokesperson told Screen Daily, “We will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators.”
OpenAI was widely considered the leader in AI with its ChatGPT model, but rivals like Claude, Gemini, and Grok have caught up and arguably surpassed it.
The company is reportedly facing significant and potentially existential challenges, as even though OpenAI maintains high revenue growth, its cost of operations is reportedly unsustainable. Shutting down Sora could help, but many believe that OpenAI’s bubble could be about to burst if things don’t improve dramatically.
Oh, and Elon Musk is still actively suing OpenAI and its CEO Sam Altman, with a trial scheduled to take place on April 27, 2026. Musk alleges that OpenAI’s shift to a for-profit structure violates its founding mission, with Musk seeking damages for “defrauding” him. If Musk is successful, he’s seeking between $79 billion and $134 billion in damages.
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Adam Vjestica is The Shortcut’s Senior Editor. Formerly TechRadar’s Gaming Hardware Editor, Adam has also worked at Nintendo of Europe as a Content Marketing Editor, where he helped launch the Nintendo Switch. He also runs a retro gaming YouTube channel called Game on, boy! Follow him on X @ItsMrProducts.
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