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Commentary: The Disney/Sora Fiasco Shows the Limits of the AI Craze

Sora peaked at over 6 million downloads by November 2024 but declined due to AI quality issues and unresolved licensing, leading to OpenAI's shutdown announcement in March 2026.

Disney and OpenAI thought their billion-dollar deal would underscore the importance of AI for Hollywood's future. Its ignominious collapse proves just the opposite

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OpenAI announced, on March 24, 2026, the closure of Sora, its artificial intelligence video generation tool. As a result, this strategic shift ended an unprecedented partnership with Disney, focused on an investment of $1 billion. Sora: a Disney–OpenAI partnership built and then destroyed First, Sora embodied an unprecedented industrial ambition. In December 2025, Disney and OpenAI formalized a three-year agreement to integrate more than 200 ico…

Disney wanted to get fat at AI and cooperated directly with OpenAI. But the deal has already burst without results. At the end of 2025, The Walt Disney Company and OpenAI still stirred up the advertising drum. Thus, the Video-KI Sora of OpenAI should be used to create content with characters of Disney and Pixar. For this an official license should be granted, so that the community can play out. More than that: Some of these AI content should als…

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The Hollywood Reporter broke the news in Los Angeles, United States on Monday, March 30, 2026.
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