OpenAI’s IPO road hits bumps: Sora shutdown, Disney deal collapse, CFO warning

OpenAI CEO Sam Altman is eyeing an initial public offering (IPO) as early as 2026, but the road to going public could prove complicated. While the company continues to command record valuations and launch AI products, it is simultaneously grappling with shelved initiatives, leadership restructuring and growing concerns around its financial health and long-term business model.

In recent months, OpenAI has experimented with multiple products and ideas, but is now pulling back to focus on scaling its enterprise and business AI offerings as it prepares for a potential IPO.

As part of this strategic reset, the company discontinued its video-generation app Sora and walked away from a major partnership with The Walt Disney Company, a deal reportedly worth up to $1 billion.

At the same time, OpenAI has initiated a leadership shake-up, signalling a broader shift toward financial discipline and operational focus. As it moves closer to an IPO, the company appears to be streamlining its priorities by shelving underperforming products and partnerships.

Sora discontinuation and the $1 billion Disney deal

In December 2025, OpenAI announced a “landmark” partnership with Disney that would have allowed it to use over 200 Disney characters within Sora. The plan included streaming Sora-generated content on Disney+ and building new applications powered by OpenAI’s technology. However, with Sora’s discontinuation, the partnership has also fallen through.

In an all-hands meeting in March, OpenAI's AGI Deployment CEO Fidji Simo reportedly told employees they could not afford to be distracted by what she called 'side quests.' 

Instant checkout for shopping

In October, OpenAI partnered with Walmart to launch “Instant Checkout” in the US, enabling users to purchase products directly within ChatGPT. However, the feature was discontinued in March 2026 after failing to gain meaningful user traction.

Integrations with platforms like Shopify and Etsy also struggled, offering limited or outdated product selections.

ChatGPT Adult Mode

OpenAI had teased an “Adult Mode” for ChatGPT and was reportedly testing the feature internally. However, plans to launch the erotic chatbot were shelved indefinitely following concerns raised by staff and investors, according to a report by Financial Times.

GPT-4o discontinued

In February, OpenAI discontinued its GPT-4o model, which had gained attention for its engaging personality. However, the model faced criticism for being overly agreeable and sycophantic. Users were subsequently migrated to newer models, including GPT-5 and GPT-5.1.

Leadership shake-up

Alongside product changes, OpenAI has also restructured its leadership team. Chief Operating Officer Brad Lightcap has been reassigned to lead special projects and will report directly to Altman.

Chief Revenue Officer Denise Dresser will now oversee commercial operations. Meanwhile, Simo has taken temporary medical leave due to a neuroimmune condition, and Chief Marketing Officer Kate Rouch has stepped down to focus on cancer treatment.

These changes come at a critical juncture as OpenAI prepares for a potential IPO. The company recently raised $122 billion in funding from existing investors and tech giants, including Amazon, Microsoft, Nvidia, and SoftBank. Notably, over $3 billion came from individual investors for the first time.

Despite strong financial backing, OpenAI’s Chief Financial Officer, Sarah Friar, has raised concerns about the company’s IPO readiness. She has flagged risks around the company’s aggressive spending and long-term commitments.

OpenAI plans to invest more than $600 billion in cloud infrastructure over the next five years and is expected to spend over $200 billion before achieving profitability, raising questions about how public market investors will evaluate such long-term bets.