OpenAI to shut Sora app, may redirect resources to core AI models

OpenAI will shut down its Sora video-generation app, the company said on Tuesday, in a move that signals a shift in priorities as it focuses on core artificial intelligence products.

The company said it will share timelines for the app and its API, along with details on how users can preserve their work. It did not specify a shutdown date.

The decision comes as OpenAI looks to streamline operations and concentrate resources on areas such as text, coding and reasoning models. According to The Wall Street Journal, senior executives have recently acknowledged that the company cannot pursue all product lines simultaneously and is sharpening its focus.

Sora, launched in 2024, marked OpenAI’s entry into AI-powered video generation. The tool allowed users to create high-quality videos from text prompts and quickly gained traction, becoming one of the most downloaded apps in its category shortly after launch, NBC News reported.

However, the product also drew scrutiny. Industry observers and content creators raised concerns about copyright risks, deepfakes and the potential displacement of creative jobs. A second-generation version released in September added audio and improved realism, intensifying debate within the entertainment industry.

The app has also been resource-intensive, with OpenAI earlier imposing limits on video generation due to constraints in computing capacity, according to NBC News. The shutdown is expected to allow the company to reallocate computing power to more commercially viable applications.

The move comes amid rising competition from rivals such as Anthropic, which has focused its efforts on text and code-based AI systems rather than multimedia generation.

It also affects partnerships tied to the platform. NBC News reported that a previously announced agreement with Walt Disney to use its intellectual property on Sora will not move forward following the shutdown decision.

OpenAI has not disclosed a successor product in the video category, nor clarified whether it will exit the segment entirely.

The decision comes weeks after the company raised significant new funding at a sharply higher valuation, underscoring investor expectations for stronger commercial focus.

As OpenAI narrows its product strategy, the shutdown of Sora highlights a broader industry reality: even the most well-funded AI players are being forced to prioritise where their technology — and computing power — delivers the highest returns.