"We're saying goodbye to Sora," the company posted on X.

The shutdown marks the end of one of the most high-profile consumer AI product launches of the past year.

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OpenAI said it would later provide timelines for winding down the standalone app, as well as details on how people can preserve their work.

The closing comes at a sensitive time for OpenAI, which faces increasing questions about the sustainability of its business model, with costs skyrocketing far faster than revenue despite having about one billion daily users worldwide.

According to The Wall Street Journal, OpenAI chief executive Sam Altman announced the changes to staff on Tuesday.

It also follows reports that OpenAI's applications chief, Fidji Simo, told staff this month that they could not be distracted by "side quests," outlining a push toward agentic AI capabilities.

These are AI systems that can work autonomously on computers to write software, analyze data and carry out other tasks.

The Hollywood Reporter meanwhile said the end of Sora would mean the end of a megadeal signed in December with Disney, which was to invest $1 billion in OpenAi and allow the licensing of its popular characters for making videos.

Citing a source close to the matter, the report said the ultimate goal had been access to Sora for the Disney+ streaming service.

"We respect OpenAI's decision to exit the video generation business and to shift its priorities elsewhere," a Disney spokesman told The Reporter.

"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."

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