OpenAI Shutters Sora, Ending Disney’s Three-Year AI Video License Deal
OpenAI has shut down its Sora social video app, terminating its three-year licensing deal that allowed AI-generated videos featuring Disney characters like Mickey Mouse. Sora’s monthly active users peaked in December 2025 before falling throughout 2026, with downloads dropping to just over one million in February.
1. Disney Entered Three-Year Licensing Deal
In early 2024, Disney signed a three-year agreement granting OpenAI rights to use its iconic characters, including Mickey Mouse, in AI-generated videos on the Sora platform. The deal represented Disney’s first major licensing partnership in the emerging AI video space.
2. Sora’s Launch and Features
Sora launched in September 2025 as a standalone social video app with a TikTok-style feed and a ‘cameo’ feature enabling users to insert themselves into AI-generated scenes with Disney intellectual property.
3. Declining Engagement Metrics
Monthly active users peaked in December 2025 then trended downward through early 2026, and downloads fell from initial rapid growth to just over one million in February, failing to sustain user engagement.
4. Partnership Termination Implications
With OpenAI discontinuing Sora, Disney loses the anticipated licensing revenue and must reassess its AI content strategy while exploring alternative technology collaborations to leverage its character portfolio.