OpenAI will discontinue its Sora video-generation app and related services as it shifts focus towards enterprise tools and coding products ahead of a potential stock market listing later this year.
According to The Wall Street Journal, chief executive Sam Altman told staff on Tuesday that the company would wind down the Sora app, its developer tools and video features within ChatGPT as part of a broader strategic reset. The move is intended to redirect computing power and talent towards productivity software and business-focused artificial intelligence.
The company later confirmed the news in a statement, saying: “We’re saying goodbye to Sora… what you made with Sora mattered, and we know this news is disappointing,” adding that further details on timelines and preserving user content would follow.
The decision comes as OpenAI consolidates its products into a single “superapp” combining ChatGPT, its Codex coding tool and a browser, as previously reported by The Wall Street Journal. The company is prioritising so-called agentic systems capable of autonomously carrying out tasks such as writing software and analysing data.
The Hollywood Reporter said the closure has also derailed a high-profile partnership with Disney, which had agreed in December to invest $1 billion and license more than 200 characters for use in Sora-generated videos. A source familiar with the matter told the outlet that the agreement will not proceed following the shutdown.
A Disney spokesperson said: “We respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere… we will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies.”
NBC News reported that the shutdown follows rising competitive pressure from rival Anthropic, whose AI models have gained traction among businesses by focusing on text and code generation rather than media tools. OpenAI has faced internal pressure to allocate scarce computing resources more efficiently, particularly given the high cost of video generation.
Sora launched in late 2024 with a surge of interest, briefly topping app store charts and attracting attention in Hollywood for its ability to generate realistic video clips. The product also drew criticism over copyright risks, prompting OpenAI to introduce controls allowing rights holders to block use of their intellectual property.
The retreat from video marks a reversal of OpenAI’s earlier strategy of rapid product expansion – including abandoning its agentic commerce plans – as the company prepares for a possible initial public offering as early as the fourth quarter.
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