tech
March 25, 2026
Disney cancels $1 billion OpenAI partnership amid Sora shutdown plans
Press reports suggest Disney was blindsided and that no money changed hands.
TL;DR
- OpenAI's exit from the video generation business has led to the cancellation of a planned $1 billion licensing partnership with Disney.
- The deal, announced in December, would have allowed over 200 Disney characters to be used in Sora-generated videos, and included a $1 billion equity investment from Disney.
- Multiple press reports suggest the deal never progressed beyond negotiations and that Disney was surprised by OpenAI's decision.
- Concerns over AI's impact on physical actors and human-created content had previously caused shockwaves in Hollywood.
- Disney has also taken action against other AI apps, such as SeeDance 2.0, for alleged intellectual property infringement.
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