Why OpenAI’s Sora video app is shutting down earlier than $1billion deal

OpenAI’s Sora announced on March 24 on X, formerly known as Twitter, that the brand is concluding the video app, which allowed users to generate videos from simple prompts.

The company revealed: “We’re saying goodbye to Sora. To everyone who created with Sora, shared it, and built community around it: thank you. What you made with Sora mattered, and we know this news is disappointing.”

It continued: “We’ll share more soon, including timelines for the app and API and details on preserving your work.”

The brand’s decision also means it halted its deal with Disney only three months after the duo joined forces for a $1 billion dollar worth, three-year-deal, which would have allowed the app to feature 200 popular Disney characters on it.

A Disney spokesperson shared: “[Disney] respect[s] OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere,” per NBC News.

The statement continued: “We appreciate the constructive collaboration between our teams and what we learned from it, and 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.”

So what happened?

It came down to a few factors including user interest rapidly declining and technological workload issues.

When the brand launched its video app in September 2025, the AI space was relatively small. Since then the space has become highly saturated with new app competitors who entered the market.

According to Appfigures, in January 2026, the number of installs decreased by 45% which lead to 1.2 million users.

On top of that, AI requires massive computing power to maintain, and operating costs can reach up to $15 million a month, according to multiple reports.

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Simply put: the video app was extremely expensive to keep up with, especially given the decreasing user numbers, therefore OpenAI decided to switch lanes.

An OpenAI spokesperson shared: “As we focus and compute demand grows, the Sora research team continues to focus on world simulation research to advance robotics that will help people solve real-world, physical tasks,” per CNN.

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The internet reacts

Fans of the app have shared their thoughts on it shutting down online. One person wrote: “[Expletive] I loved that app.” A second fan added: “I’ve been using Sora to create YouTube channels and in two months, I was able to monetize and gain over 10K followers.”

Another follower continued: “Will missed the fun.” Others rejoiced at the shut down with one person writing: “Bring back hand-drawn animation.”

A second person expressed: “AI has no place in the world of creative arts. Engineering and such, sure, that I understand, but creation is a HUMAN trait – something AI can never replace.” 

Another commenter added: “Good! We need more art, not soulless AI slop.”