OpenAI has abruptly shut down its AI video product Sora, leading to the collapse of Disney's $1 billion investment and licensing agreement. The shutdown, effective March 24, 2026, includes the termination of Sora's app, API, and domain, just six months after its public launch. Disney's deal, which allowed OpenAI to use iconic characters like Mickey Mouse, has been canceled, as confirmed by Variety and Bloomberg. The closure marks OpenAI's exit from the AI video market, leaving Runway, Kling, and Google Veo as the primary players. Sora's high compute costs and backlash over its deepfake capabilities contributed to its downfall. OpenAI will now focus on infrastructure research, particularly in robotics, as it prepares for its IPO. The AI video market is expected to consolidate, with potential price increases from remaining competitors.