The diamond deal with Walt Disney collapsed after the closure of OpenAI's video generator Sora

Disney pulls out of deal with OpenAI after Sora project shut down

Due to the discontinuation of the Sora app – OpenAI’s AI‑powered video creation service – Walt Disney announced the termination of an agreement valued at roughly $1 billion. According to *The Hollywood Reporter*, the company cited rapid growth and changes in the AI field and expressed respect for OpenAI’s decision to shift priorities.

> “We value the constructive collaboration between our teams and what we have learned from it, and we will continue to engage with AI platforms to find new ways to connect with fans where they are, responsibly implementing technologies that respect intellectual property and creators’ rights,” Disney said in a statement.

Brief history of the agreement

- In December 2023, Disney and OpenAI signed a three‑year licensing deal. Under its terms, more than 200 Disney characters could be used in videos created via Sora.
- As part of the same agreement, Disney committed to invest $1 billion in the AI startup.
- However, OpenAI clarified that the deal “depends on negotiations over final agreements, required corporate and board approvals, as well as standard closing conditions.”

Why the money never arrived

*Axios*, citing a source, confirmed that funds have not yet been transferred. *Financial Times* noted that the transaction effectively did not close due to a shift in OpenAI’s strategy. Meanwhile, *Reuters* reports that both companies are still discussing possible alternative forms of collaboration or investment.

Thus, Walt Disney decided to forgo the initial $1 billion investment after OpenAI abandoned the Sora project and changed its focus. The company continues to seek new ways to engage fans through AI technologies while respecting intellectual property rights.