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Disney didn't pull out. OpenAI is killing Sora. No Sora means Disney cannot continue with their investment.


Disney‘s much heralded $1 billion investment in OpenAI is over as the Sam Altman-led tech giant will be shuttering its standalone Sora text-to-video app.

“The deal is not moving forward,” an insider tells Deadline of the agreement then-House of Mouse CEO Bob Iger reached last year with Altman.


It is unclear how much of the $1 billion Disney had handed over to the IPO-inclined OpenAI and when and how they would be getting the money back — if at all. It looks dicey that the AI start-up will continue to have access to license 250 Disney characters, which they were set to pay the Burbank-based media giant for.

The big bucks injection late last year from Disney looked to reset the IP battle between artificial intelligence and Hollywood by permitting iconic characters from Frozen, Star Wars and the Marvel multiverse to be used on the generative AI video app. The three-year deal with OpenAI was supposed to make the leap to hyperspace this spring, Iger and other Disney brass boasted on a February earnings call.

Today, that all went in the digital trash, as OpenAI said it was pulling the plug on Sora.
I wonder if they named Sora after the character in the Kingdom Hearts franchise?
Can't decide which company is more Heartless, but I'll bet their next collaboration with Disney will be something of a Twisted Wonderland.
 
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I think this is evidence that the rumors are true that OpenAI is in real financial trouble. Sam Altman and the others at OpenAI are the worst, most devious of all these new tech execs, and they’ve been able to hide the issues with trying to push AI on the world and get people to pay for it. The other rumor is that they have about a year left before they’re out of money. We’ll see.
 
I think this is evidence that the rumors are true that OpenAI is in real financial trouble. Sam Altman and the others at OpenAI are the worst, most devious of all these new tech execs, and they’ve been able to hide the issues with trying to push AI on the world and get people to pay for it. The other rumor is that they have about a year left before they’re out of money. We’ll see.
Rumours from unknown blogs and YouTubers
 
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Disney didn't pull out. OpenAI is killing Sora. No Sora means Disney cannot continue with their investment.


Disney‘s much heralded $1 billion investment in OpenAI is over as the Sam Altman-led tech giant will be shuttering its standalone Sora text-to-video app.

“The deal is not moving forward,” an insider tells Deadline of the agreement then-House of Mouse CEO Bob Iger reached last year with Altman.


It is unclear how much of the $1 billion Disney had handed over to the IPO-inclined OpenAI and when and how they would be getting the money back — if at all. It looks dicey that the AI start-up will continue to have access to license 250 Disney characters, which they were set to pay the Burbank-based media giant for.

The big bucks injection late last year from Disney looked to reset the IP battle between artificial intelligence and Hollywood by permitting iconic characters from Frozen, Star Wars and the Marvel multiverse to be used on the generative AI video app. The three-year deal with OpenAI was supposed to make the leap to hyperspace this spring, Iger and other Disney brass boasted on a February earnings call.

Today, that all went in the digital trash, as OpenAI said it was pulling the plug on Sora.
They’re killing it because Disney pulled out and the lawsuit could cost them billions
 
Sora is insanely computationally expensive. It cost 7 to low 8 figures a day to run. I have a feeling Sora-style tools will come back in then future when the cost of tokens comes way down, which is bound to happen.
 
Sora is insanely computationally expensive. It cost 7 to low 8 figures a day to run. I have a feeling Sora-style tools will come back in then future when the cost of tokens comes way down, which is bound to happen.
Why would the cost of tokens go down when the cost of energy is only going up as we burn more and more of our finite sources of fossil fuels?
 
It will change nothing. Most videos are generated thru Google Veo anyway and posted on Meta platforms or YouTube (which has long been using AI slop upscale that looks more fake than actual fake videos from Sora).

It is an early indicator that Open AI is struggling to sustain their business model. People are switching to other platforms and almost none are paying for premium features. They can sell to Microsoft completely while they still can, Microsoft is focused on corporate clients and would sell that text slop to businesses eager to replace their workforce any day. Without this business base Open AI won’t be able to scale. It is a classic business model when they grow, saturate and sell (or slowly die).

Full AI process automation is the next frontier. When you can give AI full system access and automate work with few taps. Whoever brings that first in easy format wins. Something tells me it would be Windows 12 feature
 
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I understand the sentiment “it’s all over” on this. But being realistic here, there’s absolutely no way it’s going away… the cat is out of the bag, we won’t get back to the pre Covid, non AI and no ChatGPT world we knew before.

Also, I kinda liked the angle of social media shooting themselves in the foot realizing that the AI slop is not monetizable (or at least less) for privacy data mining
 
And that's the problem: the technology wasn't used in any meaningful way.

Yes entertainment has a value, but to police innocent fun against some quite scary and frankly sad videos is not a good business position. This is the point at which the AI bubble bursts, because you're offering a Pandora's box only to realise that people use it in all the (morally) wrong ways.
I think the biggest mistake of the so called AI revolution was providing/ allowing everyday people access to it.

I can understand Business's using it as a tool to support with day to day operations (definitely not to replace people)

AI is supposed to be a tool, kind of like how social media was but then people started using it to spread misinformation, troll people and spread overall meaningless content.

AI has gone in the same direction and apps like Sora are the perfect example of that.

Never used it and I'm glad it's gone.
 
I think this is evidence that the rumors are true that OpenAI is in real financial trouble. Sam Altman and the others at OpenAI are the worst, most devious of all these new tech execs, and they’ve been able to hide the issues with trying to push AI on the world and get people to pay for it. The other rumor is that they have about a year left before they’re out of money. We’ll see.

We can live in hope
 
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