Disney quashes $1 billion deal with OpenAI after Sora video app shutters, vows to "continue to engage with AI platforms"

Disney is no longer planning to follow through with its agreement to invest $1 billion in OpenAI to bring user generated AI videos to its platforms, including Disney Plus. The massive entertainment conglomerate killed the deal following OpenAI's announcement that its Sora video app is shutting down.

One might guess that OpenAI is launching a new video platform that somehow revises its Sora plans, but the statement put out by the company (via THR) doesn't indicate anything like that, so it's either a secret, or this is the end for OpenAI's user generated video ambitions.

"We're saying goodbye to Sora. To everyone who created with Sora, shared it, and built community around it: thank you," reads the statement. "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 preserving your work."

Sora just launched back in early December, right around the same time the Disney deal was brokered, meaning it got just under four months of life before being shuttered - not an encouraging result considering the massive monetary investments OpenAI has made into the platform.

One might also speculate that the end of the deal and the end of Sora may be connected, and that's certainly not impossible. Recent developments in US law have made it impossible to copyright AI generated material.

With Disney being aggressively litigious about maintaining its stranglehold on its IP, it may be that the house of mouse is unwilling to go anywhere near something that may have ramifications on who owns every pixel of art featuring Disney, Marvel, and Star Wars characters. It could also have something to do with the handover between outgoing CEO Bob Iger and his incoming successor Josh D'Amaro.

Whatever the reasons behind the split with OpenAI, Disney still plans to move forward with other AI partnerships. Disney's statement also backs up the idea that the end of Sora is the end of OpenAI's pursuit of video generation entirely.

"As the nascent AI field advances rapidly, we respect OpenAI's decision to exit the video generation business and to shift its priorities elsewhere," says a statement from a Disney spokesperson. "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."

Sounds like the nail in the coffin, which could be bad news overall for OpenAI, which has made its user-facing tools a major part of its business, and it's been counting on the public to embrace its technology. It's been a hard sell though, and the entertainment business is in a tooth-and-nail fight over how or if AI will be used to make new media, so OpenAI could simply be washing their hands of the embattled concept.

Though you can't generate AI video on the app yet, you can check out the best movies on Disney Plus that you can watch right now.