OpenAI announced on March 24 that it will discontinue Sora, its AI video generation app and API, just six months after launch. The company posted on X: "We're saying goodbye to Sora." Disney simultaneously dissolved its planned $1 billion investment in OpenAI.

What Happened

Sora launched in September 2025 as OpenAI's second-generation video model, capable of generating video and audio from text prompts. It became the most-downloaded app in the iOS App Store's Photo and Video category within one day. Downloads peaked at roughly 3.3 million in November 2025 before declining to 1.1 million by February 2026.

OpenAI has not disclosed a specific shutdown date but promised to share timelines for both the app and API, along with details on preserving existing user content. Video generation in ChatGPT will also be discontinued once Sora is retired.

Why It Matters

This marks a major strategic retreat by the company that popularized generative AI. OpenAI executives stated the company cannot do "everything at once" and will reallocate computing resources to coding and reasoning tasks, which generate more revenue. The Sora research team will pivot to world simulation research for robotics.

The decision comes as OpenAI faces intense competition from Anthropic and Google while cutting costs ahead of a prospective IPO. Despite having recently raised $110 billion at a $730 billion valuation, the company is retreating from expensive experimental bets to focus on profitable products.

Disney signed a three-year partnership in December 2025 to use Sora, with a planned $1 billion stake in OpenAI. That deal is now dissolved. Disney said it "respects OpenAI's decision to exit the video generation business."

Key Details

  • Sora launched September 2025, peaked at 3.3M downloads in November, declined to 1.1M by February 2026
  • No specific shutdown date announced yet; timelines for app and API "coming soon"
  • ChatGPT video generation will also be discontinued
  • Disney's $1 billion investment partnership dissolved simultaneously
  • OpenAI will redirect compute toward coding, reasoning, and robotics simulation

What to Do Next

Creators currently using Sora should export all projects before the shutdown date is announced. OpenAI said it will share details on preserving user work, but waiting carries risk.

Alternatives include Runway, Kling 3.0, Pika, and Hailuo, all of which have continued expanding their capabilities. The AI video generation market remains highly competitive without OpenAI. Our guide to the best AI video generators in 2026 covers current options and pricing. For deeper market context, see our complete video generation landscape analysis.