OpenAI shut down Sora in March 2026. Now it may be trying to get something back for it.
The company is in talks with an unnamed AI video startup that would receive deep access to the defunct text-to-video model, according to reporting by The Information. In return, OpenAI would take an undisclosed equity stake in the company.
The startup’s founding lineup is notable. It was established by Hollywood executive Jeffrey Katzenberg, former Sora research lead Bill Peebles, and ex-Dropbox CFO Sujay Jaswa.
What the deal would look like
The discussions first surfaced on October 12, 2026. No timeline has been confirmed, and the terms remain undisclosed because talks are still ongoing.
The basic structure is a swap. The startup gets in-depth access to Sora’s technology. OpenAI gets a slice of ownership instead of letting the model gather dust.
The startup’s focus is also narrower than Sora’s original pitch. It aims to build specialized tools for professional filmmakers, not consumer-facing apps.
Sora’s model may be significantly customized to fit the startup’s specific needs, meaning whatever emerges could look quite different from the product the public briefly knew.
The arrangement also fits a broader pattern in how OpenAI has handled the technology since the shutdown. The company has leaned toward selective partnerships rather than restoring public access to Sora.
How Sora got here
Sora’s arc has been short and bumpy. OpenAI previewed the model in February 2024 and launched it publicly later that year.
The launch generated significant excitement. It also drew concerns over copyright and the rights of creators whose work might feed or compete with AI-generated video.
OpenAI discontinued Sora in March 2026, citing high operating costs and a lack of consumer traction.
The shutdown carried a sizable side effect. A partnership with Disney, which included a $1 billion equity investment in OpenAI, collapsed after Sora went dark.
What this means
For OpenAI, the potential deal reads as a way to salvage value from a sunk cost. The research and engineering behind Sora already happened, and the bills to keep it running for consumers proved hard to justify.
An equity stake lets OpenAI keep exposure to any upside without carrying the operating burden that sank the consumer product.
The founding team covers distinct bases. Katzenberg brings Hollywood relationships, Peebles brings direct knowledge of the model itself, and Jaswa brings finance experience from his time as Dropbox’s CFO.
There are real risks. The copyright and creator-rights concerns that surrounded Sora’s public launch are unlikely to vanish just because the customer base changes.
Execution is another open question. Sora may need significant customization for the startup’s purposes.
There is also the plain fact that nothing is signed. The talks are ongoing, terms are undisclosed, and no timeline has been set.
Key things to watch include whether the startup reveals its name and product plans, how large OpenAI’s stake turns out to be, and whether other studios or entertainment companies show interest after the Disney partnership fell apart.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.