Disney quashes $1 billion deal with OpenAI after Sora video app shutters, vows to "continue to engage with AI platforms"
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By George Marston
Published on March 24, 2026.
Disney has withdrawn its $1 billion investment in OpenAI, following the announcement that its Sora video app is shutting down. The company vows to continue engaging with AI platforms, despite recent developments in US law making it impossible to copyright AI generated material. Despite this, Disney plans to move forward with other AI partnerships. The split could impact the future of OpenAI's user generated video ambitions, as Disney is notoriously aggressive about maintaining its control over its IP. The decision to abandon the video generation business could be bad news for the company, particularly for its user-friendly tools.
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