OpenAI has scrapped its AI video tool Sora, abruptly ending a planned $1 billion deal with Walt Disney Co, in a move that highlights the company’s shift toward more lucrative business areas. On Monday evening, teams from Walt Disney Co and OpenAI were working together on a project linked to Sora. Just 30 minutes after that meeting, the Disney team was blindsided by news that OpenAI was dropping the tool altogether, a person familiar with the matter said.
OpenAI announced the move publicly on Tuesday. “It was a big rug-pull,” said the person, who requested anonymity to discuss the matter. The decision marks a significant step by the ChatGPT maker to refocus its business on areas such as coding tools and corporate customers.