OpenAI to shutdown Sora video app in pivot toward business tools

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OpenAI said Tuesday that it would shut down its artificial intelligence video generation app Sora barely six months after its launch, as the company shifts toward business tools ahead of a potential stock market debut.

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“We’re saying goodbye to Sora,” the company posted on X.

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The shutdown marks the end of one of the most high-profile consumer AI product launches of the past year.

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OpenAI said it would later provide timelines for winding down the standalone app, as well as details on how people can preserve their work.

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The closing comes at a sensitive time for OpenAI, which faces increasing questions about the sustainability of its business model, with costs skyrocketing far faster than revenue despite having about one billion daily users worldwide.

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According to The Wall Street Journal, OpenAI chief executive Sam Altman announced the changes to staff on Tuesday.

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It also follows reports that OpenAI’s applications chief, Fidji Simo, told staff this month that they could not be distracted by “side quests,” outlining a push toward agentic AI capabilities.

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These are AI systems that can work autonomously on computers to write software, analyse data and carry out other tasks.

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The Hollywood Reporter, meanwhile, said the end of Sora would mean the end of a megadeal signed in December with Disney, which was to invest $1 billion in OpenAI and allow the licensing of its popular characters for making videos.

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Citing a source close to the matter, the report said the ultimate goal had been access to Sora for the Disney+ streaming service.

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“We respect OpenAI’s decision to exit the video generation business and to shift its priorities elsewhere,” a Disney spokesman told The Reporter.

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“We will continue to engage with AI platforms to find new ways to meet fans where they are while responsibly embracing new technologies that respect IP and the rights of creators.”

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AFP

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