OpenAI Shutters Video App Sora Ending Disney Deal

OpenAI has announced the closure of its text-to-video AI app, Sora, just months following a significant licensing agreement with Disney worth £1 billion. This abrupt decision to terminate the controversial video-generation platform comes less than four months after its debut, marking a notable retreat from the often contentious field of AI-generated media.

The Sora app, launched in December 2024, rapidly gained popularity, with over one million downloads in its first five days. Users were able to create imaginative videos featuring dog astronauts or hyper-realistic likenesses of celebrities. However, the platform faced increasing scrutiny regarding its use of copyrighted materials for training the model, raising concerns about potential deepfakes and the phenomenon referred to as “AI slop.”

In response to public backlash, OpenAI implemented restrictions preventing the creation of deepfake videos involving deceased public figures, following requests from their families. The issue escalated when actor Bryan Cranston publicly criticised the company for using his likeness without prior consent. OpenAI acknowledged the oversight and took measures to strengthen its policies regarding the representation of individuals lacking explicit authorisation.

The agreement with Disney was seen as a pivotal moment in the relationship between artificial intelligence and the creative industries. Disney was the first major studio to licence parts of its vast catalogue to OpenAI. In a statement, Disney expressed understanding of OpenAI’s decision to exit the video generation market, while reaffirming its commitment to responsibly engaging with AI technologies.

OpenAI has indicated a need to reduce expenditures and refocus on core business objectives in light of increasing competition from companies such as Anthropic and Google. As the company prepares for a potential £1 trillion stock market listing in the upcoming year, it has declared a “code red” to address its strategic priorities. The economics of video generation are challenging; OpenAI’s Sora team previously warned about the unsustainability of the operation due to high computational costs associated with video technology.

Moving forward, OpenAI aims to direct its research towards world simulation to enhance robotics capabilities intended to assist with real-world tasks. The closure of Sora, while disappointing to its user community, underscores the complexities involved in navigating the rapidly evolving landscape of artificial intelligence.