OpenAI Shuts Down Sora AI Video, Disney Drops Planned $1B Investment
variety.com
OpenAI is planning to discontinue Sora, the generative-AI video creation platform it launched in late 2024. Disney has ended its partnership for Sora.

cross-posted from: https://lemmy.world/post/44699253

This is clearly a sign that the product failed to draw in enough customers and its viability was overhyped.

Hopefully, it is the start of the AI bubble bursting.

  • mrmaplebar@fedia.io
    82·
    8 hours ago

    Chime in if you disagreee, but there’s really only 2 reasons a company like OpenAI shuts down a core service like Sora:

    • The service is hemorrhaging money to the point of financial unsustainability.
    • The service is not popular enough to drive investor hype as a “loss leader”

    We already know that OpenAI is losing money on their generative “AI” products across the board, to the tune of billions of dollars per year, and the economic woes that come from rising hardware prices, oil and gas shortages, and another pointless war in the middle east only make the situation worse for them money-wise.

    And so that really just leaves me to conclude that Sora has not maintained the level of popularity and growth needed to impress investors as Q1 comes to a close. Whether it’s users, subscriptions, or time, they must have looked at the numbers and really didn’t like what they saw.

    Hopefully this is the beginning of the end of the ridiculous “AI” bubble, and the start of a new tech sector correction.

    • halcyoncmdr@piefed.socialEnglish
      252·
      6 hours ago

      There’s a third option this time.

      It uses a lot of resources they can use immediately for the military contract that will now inevitably form the backbone of the company and effectively will mean they have won the AI war. Anthropic fumbled by not doing what the military wanted immediately, and showing a minimal backbone publicly.

    • humanspiral@lemmy.caEnglish
      3·
      6 hours ago

      The market for professional video is fairly small, and most of the cost is in sales. ie. the advertising agency, or movie/show pitch that demands the producers get rich independent of production costs.

      • worhui@lemmy.worldEnglish
        31·
        5 hours ago

        . Ai companies want to replace all YouTube , and TikTok,creators with ai video content farms, capturing the creator market and if it scales the streaming market. Instead of getting a cut gen ai would let platforms eat the whole pie alone.

        A significant number of smaller creators I watch have drastically increased the quality of animations and b roll by using ai tools.

        These tool are a big deal to a big market.