OpenAI shuts down Sora: It was a miracle, it has become a burden

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Lerato Khumalo

In December, OpenAI announced a deal with Disney to use characters like Mickey Mouse and Donald Duck through Sora; but this agreement was also canceled.

For this reason, Sora’s closure caused great surprise among users. In its statement on the

In a statement to the New York Times, OpenAI stated that video production will not end completely, but from now on it will be used mainly to produce realistic scenarios for the training of robots.

Main reason: costs

According to analysts, the biggest factor behind this sudden decision is costs. Producing videos for millions of users requires extremely high data processing power, even for a technology giant like OpenAI. This leads to serious expenses due to constantly growing data centers.

The company, which has been growing at a loss for years, now has to control costs. Founder Sam Altman’s plan to float OpenAI on the stock market is also accelerating this process. Because a more balanced financial picture is necessary to attract investors.

Competitive pressure is increasing

On the other hand, rival company Anthropic is also preparing for an IPO and may be a more attractive option for investors with its more balanced financial structure. Of course, this scenario depends on the sustainability of the current growth in the artificial intelligence sector. Otherwise, as some experts say, the possibility of the “artificial intelligence bubble” bursting is on the table.