Why OpenAI Is Shutting Down Its Video Generation App, Sora

OpenAI is pulling the plug on Sora, its TikTok-like AI video app that let users create imaginative clips from text prompts and cast themselves in the action.

Sora initially attracted massive interest, reporting one million downloads in the first five days, and skyrocketing to the top of the App Store’s Chart. However, since November 2025, the number of monthly downloads has been steadily declining. 

While users were initially able to generate videos for free to drive adoption, OpenAI later introduced fees of $4 to $10 for additional video credits. Despite this, the application became incredibly unsustainable to run. Forbes estimated that Sora cost OpenAI approximately $15 million per day to run, while the application generated $2.1 million in total revenue during its lifespan. 

OpenAI issued a statement admitting it needed to make concessions on products with high operating costs. “As we focus and compute demand grows, the Sora research team continues to focus on world simulation research to advance robotics that will help people solve real-world, physical tasks,” an OpenAI spokesperson said. 

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Disney Deal Down the Drain

In December, Disney became the first major company to license its Intellectual Property (IP) to OpenAI for use in Sora. The deal consisted of a $1 billion investment by Disney in OpenAI, and allowed users to generate videos using over 200 Disney characters. However, that deal is now off the table. 

“We appreciate the constructive collaboration between our teams and what we learned from it, and we will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators,” a statement from Disney said.

Monthly downloads of OpenAI’s text-to-video generating app Sora, from Sep 2025 to Jan 2026
Image source: Appfigures

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Sora Backlash 

Not everyone will be disappointed that the video generation app is closing shop. Shortly after its launch, Sora received massive backlash for accelerating deepfakes. In one instance, the daughter of the late civil rights activist Dr. Martin Luther King Jr went to Instagram to plead for people to stop sending her AI-generated videos of her father. 

Even more, Hollywood talent agency CAA issued a statement asserting that Sora was threatening the livelihood of their actors. The AI-video generation app posed copyright issues for both actors and filmmakers. Eventually, OpenAI had to implement guardrails and ban users from uploading pictures of real people in an effort to curb celebrity deepfakes.

Potential IPO in 2026

It is rumored that OpenAI is preparing for an Initial Public Offering (IPO) by the end of 2026. The company recently raised $122 billion with Amazon, Japan’s SoftBank Group, and Nvidia as its primary investors. Despite Sora’s closure, OpenAI’s ChatGPT still has 900 million monthly users. The company is currently valued at a whopping $852 billion, claiming it generates $2 billion in revenue per month. 

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While AI text-to-video generation may not have been OpenAI’s most successful venture, the Company is continuing to grow at full speed.