Just six days ago — and 30 minutes after a Disney-OpenAI meeting about a project with Sora — Disney's team was "blindsided" with the news Sora [1]was being discontinued , a person familiar with the matter told Reuters, [2]describing OpenAI's move as "a big rug-pull ."

Even some Sora employees were surprised by the cancellation. It was just [3]14 weeks ago Disney announced a $1 billion investment in OpenAI's AI-powered video generation tool — plus a three-year licensing deal. But that deal "never closed," [4]Reuters adds , citing two other people familiar with the matter, "and no money changed hands." (Although the two sides are still "discussing if there is another way they can partner or invest with one another, one of the people familiar with the matter said.")

But Variety wonders if the end of the Sora deal is " [5]a blessing in disguise" for Disney :

> Before Disney's officially sanctioned AI-generated versions of Mickey Mouse, Darth Vader, Baby Yoda, Deadpool and more debuted in OpenAI's Sora, the AI company abruptly [6]pulled the plug on the video app...

>

> [M]any aficionados of Disney's franchises were not, in fact, excited about what Sora's video generator might do to the likes of the Avengers superheroes or the characters from Frozen or Moana. And despite [departed Disney CEO Bob] Iger's bullishness on the Sora deal, other Disney execs were said to be concerned that going into business with OpenAI would expose the Magic Kingdom's crown jewels to the risk of being turned into so much AI slop, according to industry sources. Hollywood unions — for which AI adoption has been a hot-button issue — weren't thrilled about the Disney-Sora deal either. "Disney's announcement with OpenAI appears to sanction its theft of our work and cedes the value of what we create to a tech company that has built its business off our backs," the [7]Writers Guild of America said in December ... [S]ources say, Disney was encountering roadblocks in getting the OK from voice actors for the Sora pact...

>

> At least publicly, Disney says it is still looking at ways it can tap into the AI ecosystem. The company, in a statement Tuesday, said, "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." But at this point, Disney may decide that "meeting fans where they are" means keeping its beloved and world-famous characters away from the AI machinery.

Or, as Gizmodo puts it, "Disney [8]Says It Will Find Ways to Peddle Slop Elsewhere After Pulling Out of OpenAI Deal ."

But Deadline [9]sees the deal's collapses as a lost opportunity :

> The OpenAI partnership was a template on which to build, potentially allowing for other deals that end the exploitation of human creativity by unscrupulous AI models. It was also the kind of partnership that was palatable for the Human Artistry Campaign and Creators Coalition on AI, lobby groups that have been critical of tech business models and command support from A-listers including Scarlett Johansson, Cate Blanchett and Joseph Gordon-Levitt.

>

> Dr. Moiya McTier, an advisor to the Human Artistry Campaign, puts it this way: Part of the problem is getting "artsy people and the techie people to talk." OpenAI sinking Sora will not make these discussions easier. It's a move that starkly exposes Hollywood's vulnerability to the capriciousness of big tech.



[1] https://slashdot.org/story/26/03/24/2050222/openai-discontinues-sora-video-platform-app

[2] https://www.reuters.com/technology/openai-set-discontinue-sora-video-platform-app-wsj-reports-2026-03-24/

[3] https://slashdot.org/story/25/12/11/1522244/disney-puts-1-billion-into-openai-licenses-200-characters-for-ai-generated-videos-and-images

[4] https://www.reuters.com/technology/openai-set-discontinue-sora-video-platform-app-wsj-reports-2026-03-24/

[5] https://variety.com/2026/digital/news/why-openai-disney-ended-sora-deal-bob-iger-1236698901/

[6] https://variety.com/2026/digital/news/openai-shutting-down-sora-video-disney-1236698277/

[7] https://variety.com/2025/digital/news/wga-disney-openai-deal-theft-of-our-work-1236606872/

[8] https://gizmodo.com/disney-openai-sora-deal-dead-2000737676

[9] https://deadline.com/2026/03/disney-openai-death-hollywood-vulnerable-1236765266/