Pivot to Agentic AI and New Model Spud
OpenAI Shuts Down Sora and Ends Disney Partnership
The tech firm pivots to 'agentic AI' and a new model codenamed 'Spud' as it retires its viral video generator.

A digital tablet displaying a service discontinued notice, representing the shutdown of a video generation platform.
Photo: Avantgarde News
OpenAI announced it is shutting down its Sora AI video generator and ending its character licensing deal with Disney [1][2]. The company plans to refocus its internal resources on "agentic AI" and a new model codenamed "Spud" [1]. This sudden shift terminates a major partnership intended to bring AI-generated content to Disney properties [1]. The closure comes as Sora faced persistent scrutiny over the potential for deepfake creation and ethical misuse [2][3]. Instead of pursuing video generation, OpenAI will prioritize the development of autonomous systems capable of executing complex tasks [1]. Details on the "Spud" model remain limited, though it represents a significant strategic realignment for the organization [1].
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Sources
- 1.↗
japantimes.co.jp
https://www.japantimes.co.jp/business/2026/03/25/tech/openai-sora-disney-deal/
- 2.↗
wuft.org
https://www.wuft.org/2026-03-25/openai-pulls-the-plug-on-sora-the-viral-ai-video-app-that-sparked-deepfake-concerns
- 3.↗
bnnbloomberg.ca
https://www.bnnbloomberg.ca/business/artificial-intelligence/2026/03/24/openai-pulls-the-plug-on-sora-the-viral-ai-video-app-that-sparked-deepfake-concerns/
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About the author
Avantgarde News Desk covers pivot to agentic ai and new model spud and editorial analysis for Avantgarde News.


