AI Business & Industry

OpenAI Shuts Down Sora and Ends Disney Partnership

The tech firm pivots to 'agentic AI' and a new model codenamed 'Spud' as it retires its viral video generator.

By Kronos News Desk··1 min read
A digital tablet displaying a service discontinued notice, representing the shutdown of a video generation platform.

A digital tablet displaying a service discontinued notice, representing the shutdown of a video generation platform.

Photo: Kronos News

OpenAI announced it is shutting down its Sora AI video generator and ending its character licensing deal with Disney [1][2]. The company plans to refocus its internal resources on "agentic AI" and a new model codenamed "Spud" [1]. This sudden shift terminates a major partnership intended to bring AI-generated content to Disney properties [1]. The closure comes as Sora faced persistent scrutiny over the potential for deepfake creation and ethical misuse [2][3]. Instead of pursuing video generation, OpenAI will prioritize the development of autonomous systems capable of executing complex tasks [1]. Details on the "Spud" model remain limited, though it represents a significant strategic realignment for the organization [1].

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Kronos News Desk covers ai business & industry and editorial analysis for Kronos News.