00:00OpenAI just pulled the plug on Sora, and now Disney is out a billion-dollar deal because of it.
00:06But why was the House of Mouse involved in the first place? Here's what's happening.
00:09In December of 2025, Disney signed a billion-dollar deal with OpenAI that was supposed to be the future of
00:15AI video.
00:16Mickey Mouse, Iron Man, Darth Vader, all allowed to be AI-generated and all officially licensed.
00:22But OpenAI just announced that they are shutting down the Sora app just six months after it launched.
00:27No clear explanation given, just goodbye.
00:29Now, the app peaked at over 3.3 million downloads in November, generating only about 2.1 million dollars from
00:35in-app purchases.
00:36Which may seem like a lot, but that is pocket change for a company like OpenAI that burns billions.
00:42Now, this matters because this wasn't just one failed app.
00:45It was supposed to be a turning point for AI in Hollywood, proof that big entertainment and big tech could
00:51build a future together.
00:52But instead, it's being labeled as a cautionary tale, leaving Google as the only major player left in AI video.
00:58Now, Disney is playing it cool, saying they respect OpenAI's decision and they will keep exploring other AI programs.
01:04But OpenAI is staying quiet on why, which of course is fueling speculation.
01:09Critics say Sora was an under-moderated, deepfake machine, flooded with fake Sam Altman videos, AI-generated public figures, and
01:16copyrighted characters run amok.
01:18But supporters say the underlying technology was genuinely groundbreaking and that the Sora 2 model still exists, it's just tucked
01:25behind the chat GPT paywall.
01:26They argue that OpenAI just gave up too fast and that with better moderation and more time, Sora could have
01:32been the TikTok of AI.
01:33But what do you think?
01:35Was Sora shut down to protect us or OpenAI's bottom line?
01:38Drop your answer in the comments, check out our website, and follow us here for more.
01:41We'll see you next time.
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