---
title: Disney Dumps $1B OpenAI Deal Amid AI Video Turmoil
description: "Via Ars Technica: **Disney** abruptly canceled its **$1 billion** partnership with **OpenAI** after months of tense negotiations, ending plans to integrate A..."
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### Disney Dumps $1B OpenAI Deal Amid AI Video Turmoil

Ars Technica • March 25, 2026 at 9:56 AM ET

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**Disney** abruptly canceled its **$1 billion** partnership with **OpenAI** after months of tense negotiations, ending plans to integrate AI-generated content into Disney+ using **Sora** technology. The collapse follows Hollywood’s escalating backlash against AI tools that threaten traditional creative workflows, with studios fearing displacement of human actors and artists. **OpenAI**’s video model **Sora**, initially hailed as a breakthrough, faced dwindling user engagement and revenue, grossing just **$2.14 million** from 11.7 million downloads—a fraction of its development costs. Meanwhile, Disney aggressively defended its IP, suing **ByteDance** over unauthorized use of characters in **SeeDance 2.0**, an AI app generating viral Hollywood-style scenes.

[Read original article](https://arstechnica.com/ai/2026/03/the-end-of-sora-also-means-the-end-of-disneys-1-billion-openai-investment/)

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