Suspicions were immediately aroused when OpenAI decided last week to shut down Sora, an AI videogeneration tool, only six months after making it available to the general public.Was this a sophisticated data capture since the software had asked users to add their own facesThe true rationale, according to a recent WSJ investigation, is far more dull: OpenAI was losing the AI race by maintaining Sora, which was a money trap that no one was utilizing.
What then took place? Following a dramatic debut, Sora’s global user base reached a peak of almost a million before plummeting to less than 500,000. In the meantime, the app was spending about $1 million per day—not because users adored it, but rather because creating videos is so expensive. A limited quantity of AI chips was being depleted by each user who immersed themselves in a fanciful setting.
Anthropic was subtly winning over the software engineers and businesses that generate income while an entire team at OpenAI worked to make Sora function. Specifically, Claude Code was consuming OpenAI’s lunch.
Sam Altman, the CEO, decided to kill Sora, free up computing, and refocus.Disney, according to the WSJ, committed $1 billion to the relationship but learned that Sora was being shut down less than an hour before the public. This illustrates how abrupt this was. It perished with the agreement.
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