Disney’s big bets on the metaverse and AI slop aren’t going so well

The Verge / 3/26/2026

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Key Points

  • Disney’s newly appointed CEO is facing setbacks tied to Disney’s prior commitments to generative AI and metaverse-adjacent projects amid broader industry disruption.
  • OpenAI shutting down its Sora image-generation program directly undermines a Disney Plus partnership that had planned to integrate the tech.
  • The article highlights additional pressure from Epic Games laying off 1,000 employees while Disney has heard little about the progress of a major metaverse-building deal.
  • Taken together, these events suggest Disney’s “big bets” on AI-driven content (“AI slop”) and metaverse ambitions may be harder to execute than planned.
  • Despite the setbacks, Disney may still pursue generative AI integration in streaming, potentially resulting in a modified version of the original concept.
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Less than a week into his tenure as Disney's newly-appointed CEO, Josh D'Amaro is already dealing with two separate crises that have cast a shadow over the company's future plans. OpenAI is shutting down its Sora image-generation program just months after Disney announced a $1 billion dollar collaboration to bake the tech into Disney Plus. And Fortnite maker Epic is laying off 1,000 employees at a time when we've heard basically nothing about the game studio's $1.5 billion investment deal with Disney to build a metaverse.

Disney could still integrate generative AI into its streaming service, and we might end up seeing some version of the co …

Read the full story at The Verge.