OpenAI shut down Sora after costs hit $1 million a day
OpenAI shut down its AI video-generation tool, Sora, just six months after its public release, due to high operational costs and low user engagement, according to a WSJ investigation. Sora was reportedly burning through $1 million daily and its user count had declined significantly. The decision also led to the termination of a $1 billion partnership with Disney.
Key Takeaways
- Sora’s worldwide user count peaked at around 1 million before falling to fewer than 500,000.
- The app was reportedly burning through roughly $1 million every day because video generation is expensive to run.
- Sam Altman decided to kill Sora, free up compute, and refocus OpenAI’s resources.
- Disney had committed $1 billion to the partnership and learned of the shutdown less than an hour before the public.
Why It Matters
OpenAI’s Sora shutdown shows how quickly a high-profile consumer AI video product can become a cost center when usage drops and inference remains expensive. The decision also highlights the compute tradeoff inside OpenAI: a team was working on Sora while Anthropic’s Claude Code was winning over software engineers and enterprises that drive revenue. The most concrete signal to watch is whether OpenAI reallocates the compute that had been supporting Sora, and whether any replacement video product emerges after the Disney deal was terminated.
Read full article at techcrunch.com
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