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Ars Technica Mar 25, 2026 at 13:56 Big Tech Stable Warm

Disney cancels $1 billion OpenAI partnership amid Sora shutdown plans

Press reports suggest Disney was blindsided and that no money changed hands.

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By Kyle Orland Original source
Disney cancels $1 billion OpenAI partnership amid Sora shutdown plans

OpenAI's recently announced plans to shutter its Sora video-generating app have also scuttled the company's planned $1 billion licensing partnership with Disney, according to multiple press reports. "As the nascent AI field advances rapidly, we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere," Disney said in a statement provided to media outlets. "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 and OpenAI announced the blockbuster three-year licensing deal in December, saying that over 200 Disney-owned characters would be available for use in Sora-generated videos. At the same time, Disney said it would be making a $1 billion equity investment in the AI company. Read full article Comments

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Mar 25, 2026 at 13:56 Ars Technica

Disney cancels $1 billion OpenAI partnership amid Sora shutdown plans

Press reports suggest Disney was blindsided and that no money changed hands.

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