OpenAI is shutting down Sora, the AI video app it launched with considerable fanfare in September. The company confirmed Tuesday it would discontinue both the consumer app and API, citing compute costs and a desire to simplify its product lineup. No shutdown date yet.
The collateral damage is significant. Disney's planned $1 billion investment in OpenAI, structured entirely as stock warrants tied to a three-year character licensing deal, is now dead. A Disney spokesperson told Variety the company "will continue to engage with AI platforms" going forward. That deal, announced in December, would have let users generate videos featuring characters from Disney, Marvel, Pixar and Star Wars.
The writing was on the wall. Appfigures data shows Sora peaked at roughly 3.3 million downloads in November, then cratered: down to about 1.1 million by February. Lifetime in-app revenue hit just $2.1 million, company-reported. For context, ChatGPT has 900 million weekly active users.
An OpenAI spokesperson framed the pivot around robotics, saying the Sora research team would refocus on "world simulation research to advance robotics." The move also aligns with pressure from Anthropic, whose text-and-code-focused Claude models have gained ground with enterprise customers. OpenAI raised $110 billion recently at a $730 billion valuation, and an IPO looms. Expensive, controversial apps that generate deepfakes and copyright headaches are apparently not the look they want. Users should export their content while they still can.
Bottom Line
Sora generated just $2.1 million in lifetime revenue while burning through compute resources OpenAI now wants to redirect toward its enterprise AI and robotics efforts.
Quick Facts
- Sora standalone app launched September 2025
- Peak downloads: ~3.3 million in November 2025 (Appfigures)
- February 2026 downloads: ~1.1 million
- Lifetime in-app revenue: $2.1 million (company-reported)
- Disney $1B investment deal now cancelled
- OpenAI's current valuation: $730 billion
