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OpenAI shutting down Sora, Disney backs out of deal

Posted on 3/25/26 at 7:19 am
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52432 posts
Posted on 3/25/26 at 7:19 am
quote:

OpenAI will soon shut down its Sora AI video-generation app, the company said in a surprising announcement Tuesday.


quote:

In December, the Walt Disney Co. surprised Hollywood after announcing that it had reached a three-year deal with OpenAI to bring many of its popular characters to Sora's artificial intelligence video generator. Disney also said it planned to make a $1 billion investment in OpenAI as part of the agreement.


quote:

In the wake of Tuesday's news, Disney’s deal with OpenAI is not proceeding, according to a source familiar with the matter.


quote:

In recent weeks, top OpenAI executives have said that they are sharpening the company's focus, recognizing that it cannot do "everything at once


NBC News

quote:

Earlier on Tuesday, OpenAI announced it will pivot away from of the Instant Checkout shopping feature it announced last year. The company also announced plans to combine its web browser, ChatGPT app and Codex coding app into a singular desktop super app earlier this month.


The free and subsidized AI usage era is slowly closing. All of these companies are deeply unprofitable. We will see what truly sticks around.
Posted by PNW_TigerSaint
Member since Oct 2016
1357 posts
Posted on 3/25/26 at 8:30 am to
The first taste is free.
Posted by DarthRebel
Tier Five is Alive
Member since Feb 2013
25526 posts
Posted on 3/25/26 at 9:24 am to
Such a waste. Sora was one of the fun things with AI, but they are probably going to pivot all in to coding to compete with Claude.

At this point AI is finding a home as a better search engine and enhancement to coding, which is not really what we wanted from AI.


Posted by UltimaParadox
North Carolina
Member since Nov 2008
52432 posts
Posted on 3/25/26 at 9:38 am to
I will say they were spending a ton of compute on sora and had it road mapped with massive data centers.

Next domino would be the scale back of the data center investments
Posted by Eighteen
Member since Dec 2006
37329 posts
Posted on 3/25/26 at 9:52 am to
the absolute insane amount of AI slop everywhere across all platforms means it’s way too cheap for people to make
Posted by DarthRebel
Tier Five is Alive
Member since Feb 2013
25526 posts
Posted on 3/25/26 at 10:02 am to
quote:

Next domino would be the scale back of the data center investments


They have to at this point, as public push back has begun. Data centers sucking up power and water, along with their huge footprint and noise generation has become realized. Mix that in with threats of AI reducing workforce and I would say 2025 was probably peak on the hype scale and we are 100% in the trough of disillusionment.

Everyday people are not seeing the value of AI outside of web searches and fun with media. There is a major disconnect between AI/IT sector and business as well. The are promising AI to change business, however they are not clear how it will change it without substantial investment. There is not an immediate savings and the ROI is over several years. In several instances you are looking at spending millions to replace a few 5 digit a year jobs.

The public is looking for AI to be something out of Star Trek (Computer) or Star Wars (Droids), not an agent that can clean-up your mailbox in email or automate order flows, so some $50,000 job is not needed.


Posted by lsuconnman
Baton rouge
Member since Feb 2007
4902 posts
Posted on 3/25/26 at 10:11 am to
Ive seen numerous articles in the past few months pinpointing SORA in particular as the example of everything wrong with OpenAI’s business model. Apparently the audience actively using it are the people already paying $200/mo., but they’re burning through 10x the subscription cost alone in computing expenses.


Posted by Upperdecker
St. George, LA
Member since Nov 2014
33172 posts
Posted on 3/25/26 at 10:30 am to
quote:

this point AI is finding a home as a better search engine and enhancement to coding, which is not really what we wanted from AI.

Maybe for retail. For businesses, OpenClaw has huge potential to finally get agentic AI really moving. NVDA’s version that is closed on back end can allow companies to use OpenClaw without risk of their IP being released
Posted by DarthRebel
Tier Five is Alive
Member since Feb 2013
25526 posts
Posted on 3/25/26 at 1:24 pm to
quote:

Apparently the audience actively using it are the people already paying $200/mo., but they’re burning through 10x the subscription cost alone in computing expenses.


This is probably where they are letting greed take them sideways. The best thing AI should be focused on, make AI more efficient and cheaper. Datacenters in their current form are not the answer or sustainable, AI computational power should be focused on that, make itself better. The human brain running 20W of power has the same computational ability of a super computer. The brain stores around ~2.5 PB of information.

Maybe they are doing that somewhere, it just seems they have tossed optimization out the window in an effort to monetize what they have. We are at the limit it seems of what we can shrink chips down to, so it is going to take a new kind of chip. Looking it up it appears Intel and IBM are actually experimenting

Intel Loihi -- looking good

IBM TrueNorth - not the path forward
Posted by Upperdecker
St. George, LA
Member since Nov 2014
33172 posts
Posted on 3/25/26 at 1:38 pm to
Actual power is the biggest hurdle. We need nuclear to generate the kinds of power needed to make AI tokens cheaper
Posted by Sl0thstronautEsq
Member since Aug 2018
17796 posts
Posted on 3/25/26 at 6:07 pm to
RIP to so many AI slop cat videos

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This post was edited on 3/25/26 at 7:19 pm
Posted by DarthRebel
Tier Five is Alive
Member since Feb 2013
25526 posts
Posted on 3/25/26 at 6:39 pm to
I quit playing around with AI videos for several months, what is the best one to use now?
Posted by FnTigers
Member since Sep 2021
2934 posts
Posted on 3/25/26 at 10:30 pm to
quote:

OpenClaw
NanoClaw is the bomb.
Posted by SmackDaniels
Gulf Breeze, FL
Member since Mar 2007
15450 posts
Posted on 3/26/26 at 2:00 pm to
Is this why Disney stock is tanking over the past week?
Posted by AaronDeTiger
baton rouge
Member since Jun 2014
2307 posts
Posted on 3/26/26 at 11:36 pm to
quote:

Data centers sucking up power and water,


The water is closed loop, boomer.
Posted by lsuconnman
Baton rouge
Member since Feb 2007
4902 posts
Posted on 3/27/26 at 7:04 am to
The vast majority of data centers include in their materials the mention of a closed loop with an asterisk in small print saying “coming soon.”
This post was edited on 3/27/26 at 7:36 am
Posted by SmackoverHawg
Member since Oct 2011
31425 posts
Posted on 3/27/26 at 7:29 am to
quote:

Actual power is the biggest hurdle. We need nuclear to generate the kinds of power needed to make AI tokens cheaper

Or welfare recipients. Pull them on treadmills, stationary bikes etc. going move to get your benefits. No jobs? No problem. Let the least productive of society power the country.

Put a couple crackheads on one with free crack, grape soda and candy...they'll power a data center.
Posted by DarthRebel
Tier Five is Alive
Member since Feb 2013
25526 posts
Posted on 3/27/26 at 7:57 am to
quote:

The water is closed loop, boomer.


You might want to fact check yourself.

A data center is not the same thing as a liquid cooled PC.
Posted by DarthRebel
Tier Five is Alive
Member since Feb 2013
25526 posts
Posted on 3/27/26 at 7:59 am to
quote:

Or welfare recipients. Pull them on treadmills, stationary bikes etc. going move to get your benefits. No jobs?


Season 1, episode 2 of Blackmirror
Posted by SmackoverHawg
Member since Oct 2011
31425 posts
Posted on 3/27/26 at 8:04 am to
Really? Will have to watch.
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