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.
No, it’s called the basic business model for tech companies since years. Sadly.
A bubble popping would be when people start asking for their ROI or sell.
FallenWalnut