OpenAI is sunsetting the Sora AI-video generation app.
This is hardly surprising given the costs involved in letting the users generate these videos that are hardly recuperating. Forbes estimates this loss at a whopping $15 million a day.
Some users are contemplating a forthcoming "Super App," but that hardly makes sense in the wider context.
Disney has bowed out of its $1 billion deal with OpenAI around Sora and a spokesperson told the Hollywood Reporter it respected OpenAI's decision to exit the video generation business.
The Sora API is also gone and the video generation experience doesn't exist inside the primary ChatGPT app either.
This decision seems much more in line with the economics of AI and the increasingly desperate need in the industry to at least cut losses, if not turn profitable.
AI short-form videos have become endemic to platforms like YouTube and TikTok, and already too realistic for unsuspecting eyes. Generation of these involve high costs, at 10 to 50 cents per second with Sora based on quality.