The Walt Disney Company has ended its controversial partnership with OpenAI, closing a brief chapter that had pointed to a more experimental future for its characters and platforms.
The decision lands at a moment when AI remains a growing — and often divisive — topic across the entertainment industry. Studios have explored its potential, but audiences have been far less certain about where it belongs.
Disney’s own rollout has been uneven. The company has used AI in small but visible ways, including theme park messaging and creative assets, prompting criticism from fans concerned about the impact on artists and originality.
That backdrop made its 2025 agreement with OpenAI particularly notable.
From Deal to Exit in Under a Year
The proposed partnership centered on OpenAI’s video tool, Sora.
Unlike ChatGPT, Sora focused on generating video from text prompts — a capability that raised immediate possibilities for interactive storytelling. Under then-CEO Bob Iger, Disney signed on to a three-year deal allowing its characters to be used within the system.
Plans suggested fans could engage directly with Pixar, Marvel, and Star Wars characters through AI, either on Disney+ or OpenAI’s own platforms. The idea reflected a broader shift toward personalized entertainment, but also sparked heavy backlash amid fears of how the company's characters could be misused.
Disney has now confirmed it is stepping away from the deal entirely.
The move follows a leadership change, with Josh D’Amaro taking over as CEO earlier this month, and arrives alongside OpenAI’s decision to shut down Sora.
“We're saying goodbye to Sora,” Sora said in a statement on X, formerly Twitter. “To everyone who created with Sora, shared it, and built community around it: thank you. What you made with Sora mattered, and we know this news is disappointing. We’ll share more soon, including timelines for the app and API and details on preserving your work.”
Disney Resets AI Plans, But Doesn't Retreat Entirely
Disney’s exit does not signal a broader rejection of AI.
The company has framed the decision as part of a wider reassessment, stressing that it will continue exploring how artificial intelligence can fit into its business while maintaining control over its intellectual property.
“As the nascent AI field advances rapidly, we respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere,” a spokesperson said (via The Hollywood Reporter). “We appreciate the constructive collaboration between our teams and what we learned from it, and we will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators.”
D’Amaro has made similar points in outlining his priorities as CEO.
“Innovation has always been part of Disney's DNA,” D'Amaro said (via Deadline). “Used thoughtfully, it can empower our storytellers, strengthen our capabilities, and help us create more immersive, interactive, and personal ways for people to experience Disney.”
He also addressed the company’s approach during the 2026 Annual Shareholders Meeting.
“At Disney, creativity is always led by people that will always be the case,” he said. “Our goal with AI is to empower human creativity and not replace it. We want to give artists and filmmakers and designers better tools so that they can focus on what they do best.”
Analysts have pointed to AI as a key area for Disney’s next phase, particularly as the company looks to balance innovation with audience expectations.
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