OpenAI Reportedly Shuts Down Sora App Amid Multiple Crises

OpenAI used Sora to expand into generative video and consumer applications, and had planned to deepen its push into entertainment through content licensing and investment from Disney. As the company seeks to control costs ahead of a potential IPO, changes to Sora’s operations, funding requirements and commercial partnerships have become an important gauge of whether generative AI can establish a sustainable revenue model.

In March 2026, OpenAI reportedly decided to discontinue the Sora App, with Disney said to have learned of the move only about an hour before the announcement. A proposed $1 billion partnership also failed to materialize. At the same time, OpenAI’s work with the U.S. Department of Defense sparked controversy among users and internally, while a reported quarterly loss of $11.5 billion prompted the market to reassess the company’s valuation and the risk of an AI industry bubble.