OpenAI closes Sora video app and Disney deal
OpenAI has shut down its Sora video-generation product and terminated a $1 billion partnership with Disney, marking a significant shift in its business strategy. The moves come amid pressure to generate profits ahead of a potential stock market flotation, as Sora failed to meet commercial expectations despite high initial hype.
OpenAI closes Sora video-making app and cancels $1bn Disney deal
OpenAI closes Sora video-making app and cancels $1bn Disney deal 18 hours ago ShareSave Osmond Chia,business reporterand Emma Calder,technology reporter ShareSave OpenAI AI-generated mammoths rendered by OpenAI's Sora, which was unveiled in 2024 OpenAI has shut down its artificial intelligence (AI)
“a resource black hole with 'limited monetisation'”
The phrase 'resource black hole' is emotionally charged, dramatizing the financial underperformance of Sora where a neutral description of low revenue would suffice.
“The platform struggled to prevent the creation of non-consensual imagery and realistic misinformation, not to mention major copyright infringement”
Presents Sora's problems as a deflection against its commercial viability, bundling multiple issues (non-consensual imagery, misinformation, copyright) as a single whataboutism against the product rather than describing them on their own merits.
Exclusive | The Sudden Fall of OpenAI's Most Hyped Product Since ChatGPT
Disney's DIS -2.46%decrease; red down pointing triangle Bob Iger signed on to the vision, agreeing to have his company invest $1 billion in OpenAI and allowing the studio's Marvel, Pixar and other characters to appear in Sora videos. Just as importantly, he put Disney's valuable imprimatur behind th
“it was more AI slop than AI magic”
Charged evaluative language ('slop vs magic') where a more neutral description of underperformance would suffice, adding editorial color beyond factual reporting.
“Sora shot up to the top of the App Store in the week after its launch, despite an invitation-only user base. Users who made it found it to be a marvel: type in anything they wanted -- Homer Simpson doing Riverdance -- and a 10-second video of it would appear in a few minutes. And since the app allowed people to upload their own faces, they were suddenly making short, crazy films starring themselves. Altman himself volunteered his likeness, leading to absurd, sometimes violent or disturbing short films, that he didn't seem to mind.”
Frames Sora's launch as a dramatic success story with vivid marvellous imagery immediately before pivoting to its decline, creating a one-sided rise-and-fall narrative that directs interpretation toward the product's folly rather than its merits.
“Sora was losing roughly a million dollars a day, according to a person familiar with the matter.”
Presents the financial loss figure as the climactic economic fact, framing Sora through a purely cost-driven lens that omits any potential revenue model or long-term value argument.
If OpenAI is to float on the stock market this year, it needs to start turning a profit
If OpenAI is going to float this year , it has to get serious about its business model. The wow factor around the US company – the poster child of an AI industry boom that has stoked fears of a stock market bubble – has been long established, but when will the profits come? The party can’t go on
“a money pit”
Characterizes Sora's video-generation platform with the emotionally charged idiom 'money pit' where a more neutral description of financial loss would serve the same informational purpose.
“the poster child of an AI industry boom that has stoked fears of a stock market bubble”
'Poster child' and 'stoked fears of a stock market bubble' are charged framing choices that amplify speculative anxiety around OpenAI's valuation beyond a neutral factual description.
“It was awkward for Disney, which reportedly learned that the platform would be axed an hour before the public did.”
Selectively highlights the Disney-OpenAI relationship through a single damaging detail to build narrative momentum of OpenAI's recklessness, without presenting Disney's perspective or broader context of the partnership.
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