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Disney’s Agreement with OpenAI ‘Not Progressing’ After Sora Video App Closure

Disney's Agreement with OpenAI 'Not Progressing' After Sora Video App Closure

OpenAI Shuts Down Sora AI Video App, Ends Contract with Disney

OpenAI has decided to close its Sora AI video application, effectively ending its partnership with Disney. This announcement came on Monday.

The company expressed gratitude toward Sora’s user base but did not elaborate on the reasons behind the app’s discontinuation. “We bid farewell to Sora and appreciate everyone who contributed to its development, shared their experiences, and fostered a community around it,” OpenAI stated. They acknowledged the disappointment surrounding the news and promised to release further details soon, including a timeline for their other applications and APIs, as well as information on how to preserve user-generated content.

While OpenAI’s ChatGPT will still facilitate AI video creation, the shutdown of Sora represents a notable shift, especially since Sora had been authorized to utilize certain Disney characters, which was initially perceived as a potential breakthrough for integration with the Disney+ streaming platform.

A Disney representative confirmed that the termination of Sora effectively concludes the agreement with OpenAI. However, the company is still open to collaborating with a different generative AI firm. “As the rapidly evolving landscape of AI progresses, we respect OpenAI’s choice to step back from the video generation sector and refocus its efforts elsewhere,” the spokesperson shared. They also expressed appreciation for the productive partnership between the two organizations and indicated a commitment to exploring new innovations that honor intellectual property and creator rights.

Reports suggest that no financial transactions were completed since the deal ultimately fell through. The enthusiasm surrounding a substantial investment from Disney last year aimed to reinvigorate the IP dynamic between Hollywood and artificial intelligence, allowing esteemed characters from franchises like Frozen, Star Wars, and the Marvel Multiverse to be featured in the generative AI app. A three-year agreement with OpenAI was anticipated to elevate these efforts this spring, as noted by Disney executives during a February earnings call.

Yet, with OpenAI’s announcement about departing from Sora, those aspirations now seem to be lost in the digital void.

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