tech
March 25, 2026
Disney’s big bets on the metaverse and AI slop aren’t going so well
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TL;DR
- Disney's $1 billion collaboration with OpenAI on its Sora image-generation program is reportedly falling apart as OpenAI is shutting down the program.
- Epic Games, a partner in Disney's $1.5 billion metaverse investment, is laying off 1,000 employees, raising concerns about the progress of their joint venture.
- The decision by OpenAI to close Sora, despite the Disney deal, normalizes the idea of major companies partnering with generative AI firms.
- Disney Plus would have potentially been flooded with AI-generated content, with the deal offering OpenAI legitimacy.
- Disney's plan to pay OpenAI $1 billion for Sora to generate content is now seen as a potentially misguided decision.
- Epic Games' layoffs and spending reductions are aimed at stabilizing the company, but raise questions about the prioritization of the Disney partnership.
- The lack of concrete progress on the ambitious 'persistent universe' planned by Disney and Epic Games is concerning, especially given Fortnite's struggles.
- Disney's bets on AI and the metaverse, intended to position the company ahead of future trends, now appear uncertain and potentially expensive mistakes.
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