OpenAI has announced the closure of its AI video generation app, Sora, just six months after its launch, shifting focus towards enterprise AI tools. The decision comes amid questions regarding the sustainability of OpenAI’s business model, as operating costs outpace revenue despite a user base of approximately one billion globally. CEO Sam Altman briefed staff on this strategic shift, emphasizing the push for agentic AI capabilities—AI systems that can function autonomously. The shutdown also impacts a major partnership with Disney, which had planned to invest $1 billion in Sora for licensing its characters, aiming to integrate the app with the Disney+ platform. OpenAI promised to provide timelines for the app’s wind-down and instructions for users to save their content. Disney expressed respect for OpenAI’s decision, reiterating its commitment to leveraging AI responsibly while engaging with technology that aligns with intellectual property rights.
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