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Announcements Mar 24, 2026 at 8:57 PM

Disney Exits OpenAI Deal After AI Giant Shutters Sora

Posted by darth_vader39


https://www.hollywoodreporter.com/business/digital/openai-shutting-down-sora-ai-video-app-1236546187/

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NoTitleChamp Mar 24, 2026 +608
Thank god, unfortunately they probably jump back in the next time an AI company flutter their eyes at them.
608
kia75 Mar 24, 2026 +88
Imo, the openAI deal was never about money but was about damages. In order to sue there must be some firm of damages, and by entering into some expensive deal with openAI ( that Disney never intended to pay) it allowed them to sue other ai companies for large amounts. Now that ai companies are throwing in the towel, and don't have any money, Disney is extracting themselves from the deal. Btw, before you feel too badly about poor Sam altman, this deal, the Microsoft deal, and the Nvidia deal all were specifically structured this way to hype openAI so others would invest in them, but easy to extract themselves from. It was always a shell game, with Altman betting ai would create something of value before the house of cards came crashing down.
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brandont04 Mar 24, 2026 +30
The insane part. The richest company in the world would rather steal and train their model than pay the creative work. We're talking about companies worth over 3-4T. They play this dirty game where they pay another company to train the model, ah la steal the work, hand the model to them. This way, it was them never stealing and they didn't know the contract work stole it.
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Comprehensive_Main Mar 25, 2026 +6
If you ain’t cheating you ain’t trying - bill belichick 
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brandont04 Mar 25, 2026 -1
Oh he cheated alright.. Right out of a 1st yr nomination of a HOF.
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BottAndPaid Mar 25, 2026 +9
sam altman molested his sister throughout her whole childhood. So ya I feel nothing but distain for that man.
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multificionado Mar 25, 2026 +1
It's comeuppance at DEFCON One.
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LollipopChainsawZz Mar 24, 2026 +111
Could be a good thing for the unions undergoing contract negotiations right now. One less AI to worry about.
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slawnz Mar 25, 2026 +5
My guess here is that Disney had requirements around acceptable use of their IP in content generated by Sora (eg safeguards against characters engaging in inappropriate behaviour due to some user prompt) that OpenAI simply couldn’t reliably meet because AI. And rather than  risk future battles with the mouse’s legal team, they just said “f*** it, we’re out”.  In Josh D’Amaro’s video to shareholders upon taking over as CEO he expressed how much Disney valued human creativity and their commitment to pushing this. There was nothing at all that signalled to me he was interested in AI, so I also wonder whether this was an Iger project that D’Amaro doesn’t want. So now both companies get to just walk away from something one party couldn’t deliver on and one party doesn’t want. 
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IrrelevantLeprechaun Mar 25, 2026 -2
I see this as more of a consolidation of the AI industry into the few corporations and LLMs that are the most stable, rather than a sign of an AI collapse. They're just moving money to the ones that are more favorable. AI isn't going anywhere.
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13Nobodies Mar 24, 2026 +82
Yes! Also shame on Disney for even considering this. There’s on only one true Sora under the Disney banner, and he’s lost in Shibuya atm. He’d be pissed if he would’ve known about this.
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Worthyness Mar 25, 2026 +10
pretty sure they only did this so that they could officially DMCA the other AI companies
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ToothlessFTW Mar 24, 2026 +149
Oh they’re really running out of money, huh. I really hope we’re reaching the other side of the tunnel and this AI fanaticism finally starts to die.
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MasterOfManyWorlds Mar 24, 2026 +17
Musk or Ellison or some other maga trash will just buy up OpenAI for pennies on the dollar.. this isn't going to end
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ToothlessFTW Mar 24, 2026 +36
I mean, it’ll end when it doesn’t make any money. All Musk and Ellison care about is money. They’re Trump loyalists because it makes them very wealthy. When AI isn’t making money and it’s only costing them, they’re not gonna give a shit anymore and they’ll move on to some other grift.
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EnvironmentClear4511 Mar 25, 2026 +2
I suspect the eventual end is that AI tools become just another feature on your computer. There are already models light enough to run on your phone. Sooner or later every device will have a local light-weight model and Apple and MS will just bake that into their OSes. 
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IrrelevantLeprechaun Mar 25, 2026
The end goal was never profits. It was control. They see burning capital as being worth the expense if it means becoming less dependent on human employees.
0
masnosreme Mar 24, 2026 +10
And do what with it? Neither OpenAI nor anyone else has a viable business model. This shit hemorrhages money and only the constant glut of venture capital keeps it going and that cannot last forever.
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Top_Report_4895 Mar 25, 2026 +1
And then, do what?
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thechikeninyourbutt Mar 25, 2026
Not really.. Musk already has grok so if that acquisition happened we would just have grok that had OpenAI’s systems implemented into it.
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JanFlato Mar 25, 2026 +1
i mean it’s pretty obvious the deal was to get inside and let the disney imagineers (technical and legal teams) uncover everything related to the tech and training data. Sounds like a trojan horse of a deal.
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IrrelevantLeprechaun Mar 25, 2026 +1
It was never about making money. The end goal of AI wasn't profit; it was control. Every corporation that implements AI is doing it to harvest the data and to use that to train their LLMs to become more and more capable of flat out replacing human employees. Whether it generates profit or not doesn't matter since these corporations have literal mountains of money to throw at it for the next hundred years. They just want the power it gives them.
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Mr0lsen Mar 24, 2026 -19
Lol, you hope we’re reaching the “other side of the tunnel” where the US economy fully implodes? AI is shit, but there isn’t much else floating the boat at this point.
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ToothlessFTW Mar 24, 2026 +23
It ain’t my fault the US decided to hitch its entire economy to the most blatant snake oil scam of all time
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Mr0lsen Mar 24, 2026 -11
Right, but what comes next, the consequences of all these dumbass decisions is even worse. Shits about to hit the fan.
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ToothlessFTW Mar 25, 2026 +19
Then you should be blaming the billionaires who decided to bet your entire livelihoods on a snake oil scam instead of the people who just hate AI garbage
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Mr0lsen Mar 25, 2026 -8
Hey man, Im not blaming people who hate AI for the collapse. Just like I wouldn’t blame the victims of a massive out of season hurricane for global warming. For an even better example, I don’t blame the families in Detroit for the subprime housing collapse, but their neighborhoods are gone regardless of who you blame. This is a bad thing ending, but it’s ending in a bad way. My point is that even if you hate AI, I wouldn’t be excited for whats coming when it dies.
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Larkson9999 Mar 25, 2026 +2
Change is often only possible when things turn bad. After the Great Depression America started looking at how to model society to create and support a middle class and take care of the weakest people in society. We stand very close to facism, closer than any point in the past two centuries, and anything that gives us a chance at rending the Epstein class apart is worth taking. This pathetic AI god these pedophile protectors have built shows us just how dim they truly are and when it cracks, they can chose to release what they stole or put their neck to the block (figuratively).
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Dallywack3r Mar 24, 2026 +204
The computational cost of AI generated video is just insane and wasteful. Real video creators can make insanely complex effects-heavy videos at one thousandth of the wattage used to make this Sora slop
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Kalse1229 Mar 24, 2026 +65
Not to mention at a certain point, the computational cost probably outweighs how much they save compared to a human worker.
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No-Shopping-4434 Mar 25, 2026 +30
And definitely dwarfs in terms of the profitability of a skilled human. If anyone can make an AI Coke commercial that looks exactly like your AI Coke commercial, you’re not replacing the jobs of your advertisers, you’re removing your ability to effectively advertise altogether.
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LittleFreeCinema Mar 25, 2026 +11
The expensive thing about computer generated VFX isn't the server or technician time, it's the "above the line" look development time, where directors, VFX supervisors, production designers, producers, etc. sit around deciding what reality looks like for their film's world. For live action films and TV, efficient visual effects supervisors try to get some kind of physical version of their special effects in camera whenever possible, to ground those deliberations in the real world, narrowing the focus, and cutting down on look-dev time. In-camera practical effects make the needle-containing haystack smaller, as it were. AI generated video takes this equation in the exact opposite direction; widening the possibilities at the exact stage where you need to be narrowing them. It backs up a dumptruck full of hay onto that haystack. Speaking as a practical SPFX tech, a profession that was predicted to go extinct by 20 years ago with the daw of CGI... we're busier than ever, due to audience expectation of realistic visual effects. I don't see world where "generative" AI proves cheaper for mainstream filmmaking than human filmmaking, because what it costs is *time* to sort through it. Where I can see AI being useful is in managing a lot of the repetitive work that goes into managing things like logistics and continuity, and maybe somewhat for visioning in the early stages of production design and storyboarding.
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_Dreamer_Deceiver_ Mar 24, 2026 +17
Yeh but can they get will smith eating spaghetti?
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Voxlings Mar 24, 2026 +10
Yes. It would be very inexpensive to get Will Smith to eat spaghetti. Cost to environment would be minimal.
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smurf-vett Mar 25, 2026 +2
You forgot his private jet to Fiji and personal chef flown in from Rome
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cdmpants Mar 24, 2026 +2
But then we can't make videos forcing real people to do things they never actually did! What a terrible loss that would be to society /s
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Morgan-Moonscar Mar 24, 2026 +3
It's an even bigger financial blackhole than streaming, and they only just got out of that one before going full steam ahead aboard the Cygnus into THIS one.
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Nympho_BBC_Queen Mar 24, 2026 +2
It costs a lot of money in this economy to run generator based power plants. The loophole all those companies used just got too expensive for them. Those black neighbourhoods near Atlanta can finally breathe proper air again.
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MaTrIx4057 Mar 25, 2026 +1
Until it improves to the point that its not a slop anymore.
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6969696969696969690 Mar 24, 2026 -7
is it at one thousandth the cost? no, because it costs 100k in education for a person to be competent in digital SFX design before AI.
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VERY_MENTALLY_STABLE Mar 25, 2026 +9
SFX is not some field where you need extensive qualifications. If you can do the job you get hired, nobody cares how you got there and lots of SFX guys are just self trained nerds
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Dallywack3r Mar 24, 2026 +12
No it f****** doesn’t bro. After Effects training is f****** free.
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6969696969696969690 Mar 24, 2026 -13
hire someone for free champ.
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BeyondNetorare Mar 25, 2026 +2
I don't think the high school dropouts that make 1 hour long video essays from wikipedia articles have that
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Armand9x Mar 24, 2026 +173
Good. Now for the next few AI companies to follow this trend. Let the bubble pop.
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Really_McNamington Mar 24, 2026 +41
Signs and portents. With the oil shock too. Nearing the end times for the hyperscalers.
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Dunge Mar 24, 2026 +6
That's the problem.. for every user loss OpenAI suffered it pretty much just moved to another one
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thatoneguy889 Mar 25, 2026 +1
Except if a company like OpenAI with all its resources and investment can't find a path to make it profitable, then it's unlikely any of the others will either.
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IrrelevantLeprechaun Mar 25, 2026 +1
Yup. This isn't some bubble popping for AI; it's a consolidation. The weaker models die out and the corporations just move their money to the ones left standing. Similar to how streaming services keep consolidating, the bigger ones eating the smaller ones.
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Goosojuice Mar 25, 2026 +4
I don't think this is a bubble popping. Theyre directly competing with anthropic on an enterprise scale and sora isn't that. Openai has been pumping out bullshit to ok apps across the board. It only makes sense that they're going to drop some for the sake of competition. There's still a ton of work to be done on vid gen to make it a viable option at that level. Unless they got money to bleed making it better, just doesnt make sense to keep it going when other companys like anthropic are operating on a completely different scale. Idk, when i start seeing more companies dropping I'll stand corrected.
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IrrelevantLeprechaun Mar 25, 2026 +1
Yeah this is all just consolidation, not popping. The weaker models died out, and investors are just moving their money towards the ones that are more stable. It's no different than how smaller streaming services just get absorbed into the bigger ones.
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MaTrIx4057 Mar 25, 2026 -2
The only place anthropic are competing is coding and OpenAI have beaten them at that already.
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Goosojuice Mar 25, 2026 +1
Coding IS anthropic's enterprise product. The point im making is Sora is not an enterprise product nor have they been focusing on a main enterprise product. Openai has been shotgunning apps hoping something catches on.
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MaTrIx4057 Mar 25, 2026 +1
\> Openai has been shotgunning apps hoping something catches on. And its been working so far.
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brandont04 Mar 24, 2026 -23
It's not a bubble. Ai is real. Sure some company will fold but Ai won't go away. The Jeanie is out of the bottle.
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Other_World Mar 25, 2026 +12
Here you are on a dot com after the dot com bubble burst. A bubble bursting doesn't mean it'll go away forever.
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Larkson9999 Mar 25, 2026 +2
Unless you're referencing Jeanie from I Dream of Jeanie, you probably meant genie, which is the English term for a djinn. And AI is absolutely useless for anything but rote, repetitive tasks, most of which can be done by specialized AI that don't require massive data centers. AI isn't necessarily going away but the more efficient, smaller AI will outcompete these wasteful large language models in terms of cost and effectiveness.
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[deleted] Mar 25, 2026
[deleted]
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someonesshadow Mar 25, 2026 +6
An AI wouldn't have made that kind of mistake given the context. I'm curious why you think "chuds" are the only ones using AI apparently though. Can you elaborate? The US economy is literally imaginary at this point as well so it doesn't really matter what is the thing that has the most weight in it. The moment we started to provide tax payer hand outs to large companies to prevent them from suffering the consequences of bad business decisions... We pretty much solidified that the market is no longer real and its basically a rigged c***** for a small number of people who barely qualify as human anymore. [Source: Oil market movement minutes before the President makes the call to change a decision in that market. Must be a coincidence though...]
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fateoflight Mar 25, 2026 -5
Small correction yes, popping no. Just medicine alone has had a major boost in research from AI.
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SamuelTurn Mar 24, 2026 +23
Now they can focus on the only Sora that matters so we can get a F****** TRAILER for KH4
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deege515 Mar 25, 2026 +2
Relevant Heartless avatar.
2
jez124 Mar 24, 2026 +52
Despite being successful in many ways Disney is amazingly incompetent in other ways. Hope Altman and Open AI goes bust btw.
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Dry_Departure_7813 Mar 25, 2026 +1
They just got access to the US military infinite money pit, unfortunately they will be fine
1
TelltaleHead Mar 24, 2026 +19
It cost about 16 to 18 dollars for Sora to make a 60 second video. The monthly subscription was 20 bucks.  Yeah that math ain't mathing
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facebook57 Mar 25, 2026 +4
That’s Moviepass levels of unit economics
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VERY_MENTALLY_STABLE Mar 25, 2026 +7
OpenAI is fully fucked, this will be one of the largest corporate implosions in history.
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SnooStories892 Mar 24, 2026 +19
World is healing
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travio Mar 24, 2026 +22
The bubble is getting ready to pop. Never expected an idiotic war with Iran to pop it, but here we are. I thought the damn strait of Hormuz was just about oil, but there is a lot of important shit coming through that chokepoint. The countries that build all those fancy chips get most of their oil through the strait. That is already hurting and will get worse the longer this goes on. None of these AI models are earning profits. Every damn prompt in Sora cost Open AI money they were not getting back from subscriptions. Even with big deals like this, they wouldn't make a profit and so many of their deals with other tech companies were built on money nobody had! At least until the deals get announced and stocks go up. Disney's stock rose when this deal was announced. Just like Nvidia and Oracle when their big deals were announced, even if they were all smoke and mirrors.
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AnAussiebum Mar 24, 2026 +14
Hopefully the beginning of the bubble pop.
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IvanaTargaryen Mar 24, 2026 +6
Good, what happened to Veo 3 as well, never heard of it anymore.
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touchmybodily Mar 24, 2026 +3
Are they shuttering Sora because Disney left, or is Disney doing a “you can’t fire me I quit” type deal?
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littlemachina Mar 25, 2026 +1
They’re claiming they’re going to use the resources and research that went towards Sora for robotics now
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OkStrategy685 Mar 25, 2026 +3
The more this goes on and the more ridiculous it is, makes me believe more and more, that the tech billionaires were conned to their demise by the 'good ol boys' that were tired of seeing all that money in the hands of these young nerds. Some butthurt tycoons out there lol
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GetsBetterAfterAFew Mar 25, 2026 +3
Of course Disney invested its IP in Sora, this isnt surprising. Perhaps they will step back from ai...? im joking, no they won't.
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Arctimon Mar 24, 2026 +5
Good. Now for all of the others to get shut down.
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Klipse11 Mar 25, 2026 +2
Where’s the kingdom hearts meme?!
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DJettster237 Mar 25, 2026 +4
I wonder how much in debt they really are. Hopefully this is scaring other AI companies.
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VivianDiane Mar 25, 2026 +2
Imagine paying OpenAI millions just for them to sunset the one tool you actually wanted.
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AdNearby8567 Mar 25, 2026 +1
I wonder if this means Disney is planning to dump more resources into their own proprietary research instead of outsourcing it. Did OpenAI actually pull the plug on Sora because of technical scaling issues or was it a licensing nightmare behind the scenes that they couldnt solve with the studios?
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eye--say Mar 25, 2026 +1
The public can’t have access to military tech, now can it.
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know-your-enemy-92 Mar 25, 2026 +1
[https://www.youtube.com/watch?v=po5HxJgyaMU](https://www.youtube.com/watch?v=po5HxJgyaMU)
1
aiml_lol Mar 25, 2026 +1
Sora isn’t going away. It’s getting absorbed into GPTs pro+ plans. They just have to get ready for an IPO.
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parsimonious Mar 24, 2026 +1
Sora went down! That's f****** great news.
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Digifiend84 Mar 25, 2026 +1
The only Sora Disney should be doing stuff with is the kid with a keyblade from Destiny Islands.
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HisDivineOrder Mar 25, 2026 +1
Looks like the AI bubble deflating.
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SorryImProbablyDrunk Mar 24, 2026 -13
They think they’ve found a better, cheaper way to achieve the same result. They didn’t jump to Sora 2 so quickly just to close it down entirely, they’re iterating. I honestly don’t see the speed of this decision as a positive sign, I think it’s only going to get worse from here.
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Weekly_Power6001 Mar 25, 2026 -6
Sora is still around; the title makes it sound like OpenAI shut it down... Disney's withdrawal is more of a strategic contraction, don't blame it on Sora.
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