Open AI unexpectedly kills Sora, and I wonder if this is the start of a mini AI bubble collapse | Tech Radar

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Open AI unexpectedly kills Sora, and I wonder if this is the start of a mini AI bubble collapse

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It's not clear why, but people will be able to somehow save the videos that they created in the app and elsewhere

In a stunning turn of events, Open AI has unexpectedly shuttered the Sora app, and Disney may have walked away from its $1 billion deal in support of the generative video technology.

Less than 18 months after launching Sora to wide shock and acclaim and less than a year after launching the Sora App, Open AI announced in a X post on Tuesday, "We’re saying goodbye to Sora."

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. We’ll share more soon, including timelines for the app and API and details on…March 24, 2026

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. We’ll share more soon, including timelines for the app and API and details on…March 24, 2026

The post thanks the Sora community (which mostly lived on as a briefly popular social generative video-sharing app) and admits that the news is "disappointing." Perhaps more importantly, they promise to share details on how the Sora community can save their generative AI video work.

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Separately or perhaps what triggered this decision (or vice versa), The Hollywood Reporter claims Disney has pulled out of the $1billion dollar investment and deal, which would have brought iconic Disney characters to the Sora platform. One of Sora's chief features was the ability to use, with permission, AI characters based on real Sora users (this included Open AI CEO Sam Altman) simply by including their user names in the prompt. I created quite a few featuring Altman and me, and also a bunch just featuring me (see below).

It's unclear what precipitated this decision. Altman has yet to comment on it. In the Apple App Store, the Sora App is still #11 in Photo and Video and is still functioning on my i Phone. But the concept of an AI-generated video social platform hasn't really caught on. In fact, there's been some backlash because of all the "AI slop" coming out of Sora and being dumped onto other social platforms like Tik Tok.

I made roughly 20 Sora videos over the last six months, which is not much considering how often I post on social media. Still, the Sora App was essentially a showcase for Open AI's generative video models and a powerful tool designed to attract video pros who might integrate the tools into their traditional content creation pipelines.

One has to assume that was the big play with Disney, which planned to let Open AI use some of its characters but surely expected more out of Open AI for its own content and massive intellectual property pipeline.

Did Open AI see the massive resource suck created by a widely used generative video platform and finally balk? Or did Disney pull out, and Open AI realized it could no longer fund Sora?

It's possible that this reported demise of the Disney/Open AI deal was a first decision by new Disney CEO Josh D'Amaro, who took over on March 18. After all, Bob Iger made the deal. Perhaps D'Amaro didn't like the deal, Open AI's access to Disney characters, or thought he could get a better, more lucrative deal elsewhere.

There's also the competition to consider. Sora's capabilities seem somewhat less than special after Byte Dance's Seedance 2.0 arrived, and people were suddenly creating shockingly realistic clips featuring well-known stars (all without permission).

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Sora didn't create a business. It was like an early settler overrun by a metropolis of better options.

Still, the collapse of Sora does make one wonder if this is the first chip in the dam. Has the massive wall of unfettered AI confidence sprung a leak? Will it grow and lead to some sort of collapse? Unlikely. Mini bubble pops are to be expected as this fast-moving industry continues to grow and adjust. Not every start-up or vertical business can be a winner.

As for Sora, well, it was weird and fun. I created some silly and eye-opening short videos on the broader platform (available on the web) and the app. I wish I'd experimented more, but I'm sure I'll have more chances with the next big AI video thing.

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A 38-year industry veteran and award-winning journalist, Lance has covered technology since PCs were the size of suitcases and “on line” meant “waiting.” He’s a former Lifewire Editor-in-Chief, Mashable Editor-in-Chief, and, before that, Editor in Chief of PCMag.com and Senior Vice President of Content for Ziff Davis, Inc. He also wrote a popular, weekly tech column for Medium called The Upgrade.

Lance Ulanoff makes frequent appearances on national, international, and local news programs including Live with Kelly and Mark, the Today Show, Good Morning America, CNBC, CNN, and the BBC.

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Key Takeaways

• Open AI unexpectedly kills Sora, and I wonder if this is the start of a mini AI bubble collapse

• When you purchase through links on our site, we may earn an affiliate commission

• It's not clear why, but people will be able to somehow save the videos that they created in the app and elsewhere

• In a stunning turn of events, Open AI has unexpectedly shuttered the Sora app, and Disney may have walked away from its $1 billion deal in support of the generative video technology

• Less than 18 months after launching Sora to wide shock and acclaim and less than a year after launching the Sora App, Open AI announced in a X post on Tuesday, "We’re saying goodbye to Sora