OpenAI abruptly discontinued its Sora video generation app and API on March 24, citing unsustainable compute costs and a strategic pivot to robotics. The $1B Disney partnership collapsed — no money changed hands. Sam Altman told staff the company is winding down ALL video products. ChatGPT will no longer support video functions.
This is the single biggest AI video story of 2026. It validates Chinese competitors (Kling, Seedance, Hailuo) as the new leaders. ByteDance rolled out Seedance 2.0 globally via CapCut the SAME WEEK. The power has permanently shifted.