OpenAI closes $120B, Sora fallout
OpenAI closed an extra tranche to bring its funding round to $120 billion, but simultaneously pulled its Sora video product — a move that cost a planned $1 billion Disney partnership and spotlighted execution risk at scale. The company’s nonprofit arm also committed to spend at least $1 billion in 2026 on health and societal AI work, underscoring a dual commercial‑and‑philanthropic push. (cnbc.com) (variety.com) (bloomberg.com)
Bloomberg reported the new tranche was coming from Abu Dhabi‑linked MGX, Coatue Management and Thrive Capital, with Altimeter Capital also expected to participate. (bloomberg.com)) People familiar with the talks told Bloomberg the financing terms left OpenAI with a roughly $730 billion pre‑money peg and a potential post‑money valuation that could top $850 billion. (bloomberg.com)) OpenAI first previewed Sora in February 2024 and released the model to ChatGPT Plus users in December 2024, then launched a standalone Sora app on September 30, 2025. (cnbc.com)) The company announced it would discontinue Sora on March 24, 2026 and said it would publish timelines for the app, API and preserving user work; Bloomberg noted the move came about six months after the standalone app went live. (english.dotdotnews.com)) Variety and other outlets reported OpenAI and Walt Disney Co. are winding down the Sora‑centered commercial tie that was struck in December, and Disney said it will “continue to engage with AI platforms to find new ways to meet fans.” (variety.com)) Bloomberg’s profile of OpenAI’s nonprofit arm named the senior leaders tapped to run the foundation and said the unit will channel its work through external grants and programs focused on biological‑risk mitigation and life‑sciences initiatives. (bloomberg.com)) Multiple outlets linked the Sora shutdown to a broader company pivot toward enterprise, coding and capital discipline as OpenAI prepares for a potential public listing, with CNBC reporting cost and portfolio‑simplification rationales. (cnbc.com))
