OpenAI shut down Sora, its AI video-generation app, just six months after launch because it was too costly and underused. The app allowed users to upload their faces for video generation, but global users dropped from around 1 million to fewer than 500,000. Running the app consumed roughly $1 million daily in AI compute resources.
With Sora draining resources, OpenAI refocused on more profitable AI projects, as competitors like Anthropic and its Claude Code were gaining ground. Even Disney, which had committed $1 billion to a partnership involving Sora, was informed of the shutdown less than an hour before the public announcement.
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Marcel Chidozie is a tech analyst and writer covering foreign news, fintech, and emerging technologies at TechRegard. Based in Nigeria, He's passionate about translating complex tech developments into compelling, accessible stories for diverse audiences. His work focuses on how technology shapes innovation across Africa and globally.
