OpenAI Will Shut Down Sora Video Platform
cross-posted from: https://lemmy.world/post/44699253 [https://lemmy.world/post/44699253] > This is clearly a sign that the product failed to draw in enough customers and its viability was overhyped. > > Hopefully, it is the start of the AI bubble bursting.
OpenAI said it will discontinue Sora, the generative-AI video creation platform it launched in late 2024, without providing a reason for the decision.
That is the strongest indication this is the beginning of the end for the AI bubble. Sora burned a ton of processing power, with no clear value proposition, just to keep the hype cycle going a little longer. Shutting down without explanation leaves the most likely one: they are out of helium to pump into the balloon. And if that balloon isn’t inflating, it’s deflating.
It’s not and probably the opposite.
When Sora launched it was way ahead. Seedance 2’s release was notably better than any of the other video gen models, Sora included.
The market is getting commoditized because there’s no moat and OpenAI hasn’t led on pretty much any release for a while now other than Sora, which they’re probably falling behind on now.
This is the opposite of a burst from a tech standpoint, even if OpenAI as a company starts to pop.
TL;DR: This is likely happening because the tech accelerated across the industry in ways OpenAI can’t catch back up to, not because it’s lagging.
Upvoted for a different perspective, but I suspect it ends in the same place.
OpenAI is kept solvent by investor capital, and capital is kept flowing by the perception of OpenAI being the market leader. Seedance being a better model, enough to cause OpenAI to exit the market, still ruptures the perception of value. In a market with no clear profitability path, that’s ground falling away.
It also can’t be simply commoditized because generations (I’m sure even Seedance) are expensive and still not good enough for production use, even if 50% of their consumer base might boycott if a major studio even did use it in production. Commoditization can’t occur when there’s still no economically self-sustaining, market-acceptable “good enough” product. Without that, even if the leader changes, it’s a race between lemmings (sorry) off the cliff.
FallenWalnut