NEWS: Disney Cancels OpenAI Partnership

We’ve got some major news from Disney, and it has to do with their upcoming partnership with Sora, a part of OpenAI.

©OpenAI

Back in December 2025, Disney and Sora reached a three-year licensing deal that would bring Disney characters to Sora, which would allow the platform to “generate short, user-prompted social videos” that can be viewed and shared. However, OpenAI just announced that they’re shutting down Sora, and in response, Disney has pulled out of the deal.

According to The Hollywood Reporter, OpenAI is shutting down Sora just months after it was launched. In late 2025 when it hit the market, the service quickly had to backtrack when it had to give Hollywood studios and talent more control over their IP and likenesses on the platform. In a recent statement about the decision, the company said, “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 preserving your work.”

Following this news, Disney has reportedly pulled out of their deal with Sora, which would have had Disney invest $1 billion in the company and allow the company to license some of its characters. While OpenAI isn’t getting out of the AI video business, there’s been no news about a new deal with Disney. Regarding the decision, a Disney spokesperson said, “As the nascent AI field advances rapidly, we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere. 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.”

Originally, Disney was planning to integrate the Sora technology into the tech into Disney+ itself, so now that the deal is no longer going through, it’s unclear how Disney may continue with this idea. We’ll be sure to keep you updated on all the latest news regarding Disney and AI, so stay tuned to AllEars.