OpenAI Wrongfoots Disney

Walt Disney Co. must be so glad it committed to investing $1 billion in OpenAI and becoming a customer of the ChatGPT creator. The theme park and entertainment firm agreed to both steps as part of a deal struck last December in which it licensed its characters for use on OpenAI’s Sora video-generation tool. On Tuesday, OpenAI decided to shut down Sora. In response, Disney abandoned the entire deal, including the investment. 

Disney made a dignified public statement, saying it appreciated “what we learned” from the relationship. What Disney learned is likely pretty much what PayPal learned when OpenAI retreated from its Instant Checkout shopping service, which PayPal was helping with. The lesson (or learning, as the techies like to say): OpenAI can turn on a dime and abandon previously announced ventures, even when it has struck deals with other companies to help with said ventures. And even when those other companies have agreed to become OpenAI customers!