OpenAI has officially shut down its generative video platform, Sora, following reports that the service struggled to retain users while incurring daily operating costs of approximately $1 million.

Key points

• Sora’s daily active user count dropped from a peak of 1 million to fewer than 500,000 before the platform's closure.
• The project reportedly cost OpenAI $1 million per day to maintain due to high computational demands.
• Disney had previously planned a $1 billion partnership to integrate Sora’s technology into its Disney+ streaming service.
• Disney executives were reportedly notified of the platform's shutdown only one hour before the public announcement.
• OpenAI is shifting its strategic focus toward robotics development following the failure of its video-generation initiative.

The sudden closure of Sora highlights the significant financial risks and sustainability challenges associated with scaling high-compute generative AI products. This development leaves major corporate partners like Disney searching for new technology providers while signaling a broader pivot in OpenAI’s long-term business strategy.