OpenAI announces that generative AI video creation tool Sora will stop functioning

In a dramatic U-turn, OpenAI Group PBC has announced it is shutting down its vaunted Sora AI video application, just months after rolling out a major update.

The Wall Street Journal reported that the decision was made following a decline in interest in generative artificial intelligence video platforms.

Co-founder and CEO Sam Altman revealed the decision today, telling staff in an email that all products that use video models will be scaled back. Both consumer apps and developer versions will be removed. ChatGPT will also no longer support video features. In a social media post, OpenAI thanked Sora users and said it understood the news would be “disappointing.”

AI video generators created a lot of buzz when they first appeared, allowing users to quickly create sophisticated videos based on simple natural language prompts. OpenAI first announced Sora in February 2024, sparking much debate about whether AI will disrupt content creation, filmmaking, and media production. In September 2025, it announced a more powerful version of its tool called Sora 2. This allows us to produce longer, more realistic clips. It also introduced new features such as “Cameo,” which allows users to create videos with friends, celebrities, and more. The app quickly shot to the top of Apple Inc.’s App Store.

However, despite such updates, the reality is that most AI-generated videos are still not realistic enough to fool people. The result has been a flood of so-called “AI slops,” or low-quality or intentionally deceptive AI-generated videos, flooding social media platforms. Sora has been controversial in other ways as well. Last year, OpenAI temporarily blocked the creation of videos depicting Martin Luther King Jr. after users created what it called “disrespectful depictions” of him. The app has also sparked alarm among copyright and deepfake experts concerned about the potential for abuse.

Nevertheless, the app has also gained some major fans. Walt Disney announced in December that it had agreed to a multi-year licensing agreement with OpenAI, allowing Sora users to create videos featuring famous characters such as Mickey Mouse, as well as characters from the company’s Pixar, Marvel and Star Wars universes. Disney has pledged to be a “major customer” of OpenAI, saying it will leverage AI to create new products and experiences for its customers.

However, following the app’s closure, Disney announced that it would cease investing in Sora. “As the nascent field of AI advances rapidly, we respect OpenAI’s decision to exit the video generation business and shift its priorities to other areas,” a company spokesperson told WSJ.

enterprise pivot

Sora’s decision to close comes as OpenAI pivots to enterprise customers and seeks to replicate the success of rival Anthropic PBC, which has become hugely popular with enterprises for its coding capabilities. ChatGPT makers want to further shift valuable computing resources towards productivity tools that can be used by businesses and individuals alike.

In line with that strategy, OpenAI announced last week that it would combine the ChatGPT desktop app with its coding tool Codex and web browser to create a single AI “super app.” Meanwhile, the team working on Sora will instead focus on long-term and potentially more profitable businesses, such as autonomous robots, Altman said.

OpenAI is racing to catch up with Anthropic, which has generated a multibillion-dollar revenue stream by focusing on enterprise customers. Earlier this month, OpenAI’s head of applications, Fidi Simo, told employees at an all-hands meeting to avoid getting distracted by “side quests.” Instead, we want to focus on agent systems that can perform tasks on behalf of humans and improve productivity.

The closure of OpenAI does not mean the end of AI-generated videos. In fact, it will simply create more room for AI video startups like Runway Inc. and Lightricks Inc. to fly the flag.

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