Disney’s big bets on the metaverse and AI slop aren’t going so well
Summary
Disney's new CEO is facing two major setbacks: OpenAI is shutting down its Sora image-generation program (software that creates images from text descriptions) just after Disney invested $1 billion to use it on Disney Plus, and Epic Games is laying off 1,000 employees while their $1.5 billion metaverse (a shared virtual world) project with Disney has gone quiet. These failures highlight risks in Disney's strategy to use AI and virtual worlds for future growth.
Classification
Affected Vendors
Related Issues
Original source: https://www.theverge.com/streaming/900837/disney-open-ai-sora-epic-fortnite-metaverse
First tracked: March 25, 2026 at 08:00 PM
Classified by LLM (prompt v3) · confidence: 75%