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Why OpenAI really shut down Sora

TechCrunch·@ConnieLoizos·2 months ago
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OpenAI’s decision last week to shut down Sora, its AI video-generation tool, just six months after releasing it to the public raised immediate suspicions. The app had invited users to upload their own faces — so was this some kind of elaborate data grab? According to a new WSJ investigation, the real explanation is considerably more boring: Sora was a money pit that nobody was using, and keeping it alive was costing OpenAI the AI race. So what happened? After a splashy launch, Sora’s worldwide user count peaked at around a million and then collapsed to fewer than 500,000. Meanwhile, the app was burning through roughly $1 million every day — not because people loved it but because video generation is so costly to run. Every user who dropped themselves into a fantastical scene was drawing down a finite supply of AI chips. While a whole team inside OpenAI was focused on making Sora work, Anthropic was quietly winning over the software engineers and enterprises that drive revenue.…

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