Variety reports OpenAI is shutting down its generative AI video app Sora. The company, which also operates ChatGPT, did not provide a reason why, although the app was likely deemed to be unprofitable. As a result, Disney, which announced a $1 billion deal to license its characters to Sora less than four months ago, will be pulling out of its partnership with OpenAI.
A Disney representative told the trade paper, “We respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere. We appreciate the constructive collaboration between our teams and what we learned from it, and 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.”
Disney’s three-year deal would’ve allowed Sora users to prompt fake videos of over 200 masked, animated, or creature characters (not subject to protection from SAG-AFTRA) from Disney Animation, Pixar, Marvel, and Star Wars. The company hoped to share some of these videos on its streaming service Disney+. Additionally, Disney planned to use OpenAI’s APIs “to build new products, tools, and experiences,” and have its employees use ChatGPT.
The news will likely be welcomed by SAG-AFTRA and the Writers Guild of America, both of whom criticized the deal last year, and many other creatives working on Disney projects. However, as shown by their statement on Sora’s shutdown, Disney’s executives will presumably not stop chasing the generative AI bubble anytime soon.
At his first shareholders’ meeting last week, newly appointed Disney CEO Josh D’Amaro stated, “We’ve never shied away from the latest innovations — and in many cases we’re the ones pushing the envelope. Because we know technology acts as an amplifier for our stories, our experiences, and the emotional connection audiences have with our brand.” At the same time, he noted, “We have the most creative, most passionate, dedicated people — and it’s because of our people that we’ll continue to create stories and experiences that our fans carry with them for a lifetime.”
