OpenAI has abruptly shuttered its Sora video generation app and API, signaling a major strategic pivot away from consumer-facing AI video creation. The company provided no closure timeline but confirmed the move in an X post. This decision follows intense backlash and legal threats from major publishers like Square Enix, Bandai Namco, and Nintendo over AI-generated videos using their intellectual property. Disney, a key investor, has now withdrawn its previously announced $1 billion commitment to OpenAI's video division.

The media giant stated it respects OpenAI's shift in priorities while emphasizing continued AI engagement under responsible frameworks that protect creators' rights and intellectual property.