Economy

Disney pulls out: Why the collapse of Sora is the AI fail of 2026

Disney ends OpenAI deal as Sora app shuts down / Photo: Reuters/Dado Ruvic, photo editor: Dastan Shanay

The long-promised wave of AI-driven filmmaking — cheaper and faster than productions involving human crews — has yet to materialize. Expectations surrounding tools like Sora have not translated into a meaningful shift in how movies are made or consumed, according to 404 Media.

Disney’s ambitious plan unravels

Just a few months ago, the Walt Disney Company unveiled a bold initiative tied to a reported $1 billion investment in OpenAI. The plan aimed to bring user-generated AI content to Disney+, allowing fans to create videos using Sora and ChatGPT image tools featuring Disney’s licensed characters, with a rollout expected in early 2026.

Read also: Japan raises copyright concerns with OpenAI over use of anime in AI models.

That vision collapsed abruptly. As 404 Media reported, Disney scrapped the effort before users were ever given the chance to experiment with the technology on its platform.

Questions about AI-generated content

From the outset, the strategy raised concerns. It was unclear why Disney would place low-quality, user-generated AI videos (AI slop) alongside polished studio content like “Toy Story 4” and other flagship titles.

Economic motivations and industry assumptions

One explanation, 404 Media suggested, is that entertainment and tech executives are eager to cut labor costs. In doing so, they may have overestimated audience willingness to embrace AI-generated material, assuming viewers would accept it if widely distributed.

audiobooks
Image generated by neural network, photo editor: Adelina Mamedova

Read also: AI-narrated audiobooks: Can a machine ever truly tell a story?

Initial curiosity around Sora quickly faded. Rather than becoming a destination for entertainment, the tool was often used to create content that users reposted on other platforms. This trend came at a significant operational cost to OpenAI, without demonstrating strong demand for AI-native video experiences.

AI in Hollywood: Limited, behind-the-scenes use

Despite heavy promotion, so-called «AI movies» and AI-generated visual effects have largely failed to meet expectations. Issues such as visual inconsistencies, unnatural aesthetics and lack of narrative cohesion persist, raising doubts about their viability as true filmmaking tools.

That said, studios are incorporating AI in more restrained ways — including editing assistance, storyboarding and temporary voice work. These applications support production rather than replace it.

The future remains uncertain

For now, the idea that AI will supplant human creativity in Hollywood remains speculative. As 404 Media concluded, the industry’s most ambitious claims about AI-driven storytelling have yet to be realized, and it remains unclear whether they ever will.