OpenAI's abrupt decision earlier this month to kill Sora, its AI video creator, is one of the most baffling developments in the AI business—not least because OpenAI had just struck a high-profile deal with Walt Disney Co. months before.
The
Wall Street Journal has new details that shed a bit more light on what happened. According to the report, OpenAI's decision to pull the plug on Sora was as big a surprise to execs at Disney as it was to the rest of us, with many Disney folks learning of the plan less than one hour before the announcement.
But why did OpenAI kill Sora?
The direct cause was Spud, a new large language model that OpenAI is racing to put through its final training process. OpenAI has a finite amount of computing capacity on which to train its models, and Sora was simply hogging up too many resources for a product that wasn't a priority.
As for why Sora wasn't a priority, the WSJ reports that usage peaked at around a million users shortly after its launch in September, and has declined to about half that since then. What's more, the hefty computing power necessary to create the videos means that Sora is losing about $1 million a day for OpenAI, an anonymous source told the WSJ. There's clearly still a lot more to learn about the death of Sora (and if you have any insight, please reach out: alexei.oreskovic@fortune.com), but at least we now have a chalk outline of the body and some bullet casings to examine.—
AO