OpenAI shuts down Sora video platform after low usage, zero Disney funds

OpenAI is shutting down its Sora video platform just six months after its public debut, citing low user engagement, minimal revenue, and the collapse of a key corporate partnership. The company announced the phased shutdown on March 24, highlighting the challenges facing AI-generated video tools, including backlash over deepfakes.

The move spotlights the perils facing AI-generated short-form video as backlash over deepfakes collides with slipping user growth and abandoned corporate partnerships.

Low Usage and a Failed Disney Deal Sealed Sora's Fate

OpenAI's decision to shut down Sora stems from a steep decline in user activity and insufficient revenue. The platform's challenges were compounded by the failure of a planned $1 billion partnership with Disney and growing concerns over the misuse of its features for creating deepfakes.

App store data analyzed by TechCrunch reveals a sharp drop in downloads, from a peak of 3.3 million in November 2025 to just 1.1 million by February 2026. Furthermore, lifetime in-app purchases totaled only $2.1 million, a stark contrast to the substantial weekly revenue from ChatGPT.

The platform's viability also depended on a proposed three-year, $1 billion licensing deal with Disney that ultimately failed to materialize. A source informed the Los Angeles Times that no funds were ever transferred. The loss of this critical investment - and access to Disney's iconic character roster - dealt a fatal blow to Sora's strategy.

Significant moderation challenges also plagued the platform. A feature allowing users to generate photorealistic "characters" of public figures was easily exploited to create non-consensual deepfakes, despite safety filters. This porous system drew heavy criticism and amplified regulatory concerns about synthetic media's potential impact on election integrity.

Key Metrics Behind the Shutdown

• Peak monthly downloads: 3,332,200 (Nov 2025)
• February 2026 downloads: 1,128,700
• Lifetime in-app spend: 2.1 million dollars
• Disney investment received: 0 dollars

An OpenAI executive described the shutdown as a strategic pivot, telling the newsletter Understanding AI, "We cannot miss this moment because we are distracted by side quests." The company plans to refocus its efforts, integrating the core Sora 2 model into its paid ChatGPT subscription. This allows continued text-to-video development for professional users without the complexities of moderating a public social platform.

Impact on the AI Video Market and Regulation

Sora's closure occurs as the industry grapples with the broader implications of synthetic media. The proliferation of non-consensual deepfake content - which researchers estimate grew 900% between 2023 and 2025 - has intensified the debate. Organizations like the World Economic Forum have warned that highly realistic political deepfakes pose a significant threat to trust during major election cycles.

Regulatory responses remain fragmented globally. While the European Union's AI Act mandates labeling for high-risk synthetic media and various U.S. states are targeting explicit deepfakes, effective enforcement mechanisms struggle to keep pace with the rapid evolution of generation technology.

While OpenAI's exit removes a major competitor from the AI video space, the underlying technology continues to advance. Rivals like Runway, Pika, and Google DeepMind are still actively developing their prompt-to-video systems. Their success will depend on creating the robust safeguards and sustainable business models that Sora could not achieve.