OpenAI has shuttered its AI video app Sora and axed its $1bn content pact with Disney. The move comes as the firm pivots towards more tangible applications, like robotics.

The closure of Sora, which generated buzz for high-quality videos from simple prompts, reflects growing concerns over monetisation and ethical implications. With just $1.4m in revenues since launch, compared to ChatGPT’s $1.9bn, OpenAI may be rethinking its AI video strategy.

Disney’s decision to cancel the deal, while respecting OpenAI’s priorities, signals a broader shift in how tech giants approach partnerships with AI firms. The cancellation comes amid rising competition and ethical concerns over copyright infringements and non-consensual imagery.

The end of Sora also marks a significant turning point for the media industry, as it grapples with the implications of AI-generated content. While some see potential in AI-driven creativity, others fear its impact on traditional jobs and intellectual property rights.

OpenAI continues to develop ‘agentic’ technology that can operate autonomously, aiming to apply advanced AI techniques from video generation to robotics. This move underscores a broader trend towards practical applications of AI rather than just consumer entertainment tools.