×
Why OpenAI really shut down Sora | TechCrunch

Why OpenAI really shut down Sora | TechCrunch

Tech-news ,

OpenAI’s decision last week to shut down Sora, its AI video-generation tool, just six months after releasing it to the public raised immediate suspicions. The app had invited users to upload their own faces — so was this some kind of elaborate data grab? According to a new WSJ investigation, the real explanation is considerably more boring: Sora was a money pit that nobody was using, and keeping it alive was costing OpenAI the AI race.

So what happened? After a splashy launch, Sora’s worldwide user count peaked at around a million and then collapsed to fewer than 500,000. Meanwhile, the app was burning through roughly $1 million every day — not because people loved it but because video generation is so costly to run. Every user who dropped themselves into a fantastical scene was drawing down a finite supply of AI chips.

While a whole team inside OpenAI was focused on making Sora work, Anthropic was quietly winning over the software engineers and enterprises that drive revenue. Claude Code, in particular, was eating OpenAI’s lunch.

So CEO Sam Altman made the call: kill Sora, free up compute, and refocus. If you want to understand just how sudden this was, consider what happened to Disney, per the WSJ: the entertainment giant had committed $1 billion to the partnership, yet found out Sora was being shut down less than an hour before the public. The deal died with it.

Source link
#OpenAI #shut #Sora #TechCrunch

Tag

Related Posts

Amazon‘s 12th annual Prime Day sale will run from June 23 to 26 this year, the company said Tuesday. For the second year in a row, the flagship summer savings event will last four days, up from its original two.

This will be the first year that Prime Day falls in June instead of its usual mid-July time slot. Amazon initially announced the shift in its first-quarter earnings statement posted on April 29 — possibly by mistake.

The June move was mentioned in a section of the statement about recent company updates: “Amazon … Shared that Prime Day will take place in most countries in June,” it read. But in fact, the retail giant had not shared the news at that point. Amazon then published a blog post with a formal announcement less than an hour after the statement went out.

“Prime Day is back!” the post read. “Amazon’s annual deals event for Prime members returns this June, with discounts on some of the hottest brands, socially trending items, creator favorites, and Amazon-exclusive products to make this June’s event even more valuable for members.”

At the time, an Amazon spokesperson told Mashable that it was moving Prime Day to June on shoppers’ behalf. (They didn’t elaborate on specifics.)

“Each year, we work with our teams around the world to determine the best timing for Prime Day,” they said. “This year, we felt holding the event earlier in the summer was the right choice for our customers.”

Competing retailers like Best Buy, Target, and Walmart always ran their own sales alongside Prime Day back when it was held in July. That will probably still be the case this year, though none of them have announced anything yet.

#Prime #Day #Amazon #announces #dates #sale">When is Prime Day? Amazon announces dates of 2026 sale. Amazon‘s 12th annual Prime Day sale will run from June 23 to 26 this year, the company said Tuesday. For the second year in a row, the flagship summer savings event will last four days, up from its original two.This will be the first year that Prime Day falls in June instead of its usual mid-July time slot. Amazon initially announced the shift in its first-quarter earnings statement posted on April 29 — possibly by mistake. The June move was mentioned in a section of the statement about recent company updates: “Amazon … Shared that Prime Day will take place in most countries in June,” it read. But in fact, the retail giant had not shared the news at that point. Amazon then published a blog post with a formal announcement less than an hour after the statement went out. Mashable Trend Report “Prime Day is back!” the post read. “Amazon’s annual deals event for Prime members returns this June, with discounts on some of the hottest brands, socially trending items, creator favorites, and Amazon-exclusive products to make this June’s event even more valuable for members.”At the time, an Amazon spokesperson told Mashable that it was moving Prime Day to June on shoppers’ behalf. (They didn’t elaborate on specifics.) “Each year, we work with our teams around the world to determine the best timing for Prime Day,” they said. “This year, we felt holding the event earlier in the summer was the right choice for our customers.”Competing retailers like Best Buy, Target, and Walmart always ran their own sales alongside Prime Day back when it was held in July. That will probably still be the case this year, though none of them have announced anything yet. #Prime #Day #Amazon #announces #dates #sale

Amazon‘s 12th annual Prime Day sale will run from June 23 to 26 this year, the company said Tuesday. For the second year in a row, the flagship summer savings event will last four days, up from its original two.

This will be the first year that Prime Day falls in June instead of its usual mid-July time slot. Amazon initially announced the shift in its first-quarter earnings statement posted on April 29 — possibly by mistake.

The June move was mentioned in a section of the statement about recent company updates: “Amazon … Shared that Prime Day will take place in most countries in June,” it read. But in fact, the retail giant had not shared the news at that point. Amazon then published a blog post with a formal announcement less than an hour after the statement went out.

“Prime Day is back!” the post read. “Amazon’s annual deals event for Prime members returns this June, with discounts on some of the hottest brands, socially trending items, creator favorites, and Amazon-exclusive products to make this June’s event even more valuable for members.”

At the time, an Amazon spokesperson told Mashable that it was moving Prime Day to June on shoppers’ behalf. (They didn’t elaborate on specifics.)

“Each year, we work with our teams around the world to determine the best timing for Prime Day,” they said. “This year, we felt holding the event earlier in the summer was the right choice for our customers.”

Competing retailers like Best Buy, Target, and Walmart always ran their own sales alongside Prime Day back when it was held in July. That will probably still be the case this year, though none of them have announced anything yet.

#Prime #Day #Amazon #announces #dates #sale">When is Prime Day? Amazon announces dates of 2026 sale.

Amazon‘s 12th annual Prime Day sale will run from June 23 to 26 this year, the company said Tuesday. For the second year in a row, the flagship summer savings event will last four days, up from its original two.

This will be the first year that Prime Day falls in June instead of its usual mid-July time slot. Amazon initially announced the shift in its first-quarter earnings statement posted on April 29 — possibly by mistake.

The June move was mentioned in a section of the statement about recent company updates: “Amazon … Shared that Prime Day will take place in most countries in June,” it read. But in fact, the retail giant had not shared the news at that point. Amazon then published a blog post with a formal announcement less than an hour after the statement went out.

“Prime Day is back!” the post read. “Amazon’s annual deals event for Prime members returns this June, with discounts on some of the hottest brands, socially trending items, creator favorites, and Amazon-exclusive products to make this June’s event even more valuable for members.”

At the time, an Amazon spokesperson told Mashable that it was moving Prime Day to June on shoppers’ behalf. (They didn’t elaborate on specifics.)

“Each year, we work with our teams around the world to determine the best timing for Prime Day,” they said. “This year, we felt holding the event earlier in the summer was the right choice for our customers.”

Competing retailers like Best Buy, Target, and Walmart always ran their own sales alongside Prime Day back when it was held in July. That will probably still be the case this year, though none of them have announced anything yet.

#Prime #Day #Amazon #announces #dates #sale

“He noted that the reverse of the watch indicates that it is a Google Pixel 5, which has not yet been announced, let alone released,” Pitchford writes. “It seems to be fine. The face indicates an empty battery, but seems to have enough reserve power to display the correct time.” After putting out a call to find its owner, Pitchford said someone contacted him and that he’s “arranged for its return.” Google didn’t immediately respond to The Verge’s request for comment.

Google typically shows off its newest Pixel devices in August. That means we’ll find out if someone really dropped a not-yet-revealed Pixel Watch 5 into the ocean in just a few short months.

#Google #Pixel #Watch #spoiled #creator #BorderlandsEntertainment,Gadgets,Gaming,Google,Google Pixel,News,Smartwatch,Tech,Wearable">The Google Pixel Watch 5 may have been spoiled by… the creator of BorderlandsWe may just have gotten an early look at the Google Pixel Watch 5 — and from an unusual source. Randy Pitchford, the creator of the Borderlands game franchise, posted a pair of images of a watch on X, saying that his friend found it underwater while scuba diving near Saint Martin, as reported earlier by Kotaku.“He noted that the reverse of the watch indicates that it is a Google Pixel 5, which has not yet been announced, let alone released,” Pitchford writes. “It seems to be fine. The face indicates an empty battery, but seems to have enough reserve power to display the correct time.” After putting out a call to find its owner, Pitchford said someone contacted him and that he’s “arranged for its return.” Google didn’t immediately respond to The Verge’s request for comment.Google typically shows off its newest Pixel devices in August. That means we’ll find out if someone really dropped a not-yet-revealed Pixel Watch 5 into the ocean in just a few short months.#Google #Pixel #Watch #spoiled #creator #BorderlandsEntertainment,Gadgets,Gaming,Google,Google Pixel,News,Smartwatch,Tech,Wearable

reported earlier by Kotaku.

“He noted that the reverse of the watch indicates that it is a Google Pixel 5, which has not yet been announced, let alone released,” Pitchford writes. “It seems to be fine. The face indicates an empty battery, but seems to have enough reserve power to display the correct time.” After putting out a call to find its owner, Pitchford said someone contacted him and that he’s “arranged for its return.” Google didn’t immediately respond to The Verge’s request for comment.

Google typically shows off its newest Pixel devices in August. That means we’ll find out if someone really dropped a not-yet-revealed Pixel Watch 5 into the ocean in just a few short months.

#Google #Pixel #Watch #spoiled #creator #BorderlandsEntertainment,Gadgets,Gaming,Google,Google Pixel,News,Smartwatch,Tech,Wearable">The Google Pixel Watch 5 may have been spoiled by… the creator of Borderlands

We may just have gotten an early look at the Google Pixel Watch 5 — and from an unusual source. Randy Pitchford, the creator of the Borderlands game franchise, posted a pair of images of a watch on X, saying that his friend found it underwater while scuba diving near Saint Martin, as reported earlier by Kotaku.

“He noted that the reverse of the watch indicates that it is a Google Pixel 5, which has not yet been announced, let alone released,” Pitchford writes. “It seems to be fine. The face indicates an empty battery, but seems to have enough reserve power to display the correct time.” After putting out a call to find its owner, Pitchford said someone contacted him and that he’s “arranged for its return.” Google didn’t immediately respond to The Verge’s request for comment.

Google typically shows off its newest Pixel devices in August. That means we’ll find out if someone really dropped a not-yet-revealed Pixel Watch 5 into the ocean in just a few short months.

#Google #Pixel #Watch #spoiled #creator #BorderlandsEntertainment,Gadgets,Gaming,Google,Google Pixel,News,Smartwatch,Tech,Wearable
Google parent company Alphabet said Monday that it plans to raise $80 billion to help pay for the massive AI infrastructure buildout it has planned. Alphabet will sell off that amount in stock, and will then use the funds to pay for “general corporate purposes, including capital expenditures to scale AI infrastructure and global compute,” the company said in a statement.

Part of the plan involves selling $10 billion in stock to Berkshire Hathaway, the massive global holding company formerly led by Warren Buffet.

“The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,” Alphabet said in its statement. “By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”

The company added that the stock plan represented a way to “fund its investments in a balanced way while retaining a healthy balance sheet.”

Like other tech giants, Google has announced plans for a massive investment in compute this year, the likes of which will be used to support a flurry of new AI services. At Google I/O last month, CEO Sundar Pichai said that the company expects to spend between $180 and $190 billion on capex before the year is out. Google and other tech giants are expected to spend as much as $700 billion this year on AI capex.

#Alphabet #plans #raise #billion #pay #buildout #TechCrunchAI,Alphabet,compute,Google">Alphabet plans to raise billion to pay for AI buildout | TechCrunch Google parent company Alphabet said Monday that it plans to raise billion to help pay for the massive AI infrastructure buildout it has planned. Alphabet will sell off that amount in stock, and will then use the funds to pay for “general corporate purposes, including capital expenditures to scale AI infrastructure and global compute,” the company said in a statement. Part of the plan involves selling billion in stock to Berkshire Hathaway, the massive global holding company formerly led by Warren Buffet. “The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,” Alphabet said in its statement. “By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.” The company added that the stock plan represented a way to “fund its investments in a balanced way while retaining a healthy balance sheet.” Like other tech giants, Google has announced plans for a massive investment in compute this year, the likes of which will be used to support a flurry of new AI services. At Google I/O last month, CEO Sundar Pichai said that the company expects to spend between 0 and 0 billion on capex before the year is out. Google and other tech giants are expected to spend as much as 0 billion this year on AI capex. #Alphabet #plans #raise #billion #pay #buildout #TechCrunchAI,Alphabet,compute,Google

in a statement.

Part of the plan involves selling $10 billion in stock to Berkshire Hathaway, the massive global holding company formerly led by Warren Buffet.

“The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,” Alphabet said in its statement. “By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”

The company added that the stock plan represented a way to “fund its investments in a balanced way while retaining a healthy balance sheet.”

Like other tech giants, Google has announced plans for a massive investment in compute this year, the likes of which will be used to support a flurry of new AI services. At Google I/O last month, CEO Sundar Pichai said that the company expects to spend between $180 and $190 billion on capex before the year is out. Google and other tech giants are expected to spend as much as $700 billion this year on AI capex.

#Alphabet #plans #raise #billion #pay #buildout #TechCrunchAI,Alphabet,compute,Google">Alphabet plans to raise $80 billion to pay for AI buildout | TechCrunch

Google parent company Alphabet said Monday that it plans to raise $80 billion to help pay for the massive AI infrastructure buildout it has planned. Alphabet will sell off that amount in stock, and will then use the funds to pay for “general corporate purposes, including capital expenditures to scale AI infrastructure and global compute,” the company said in a statement.

Part of the plan involves selling $10 billion in stock to Berkshire Hathaway, the massive global holding company formerly led by Warren Buffet.

“The company is experiencing strong demand for its AI solutions and services from enterprises and consumers, at levels that are exceeding the company’s available supply,” Alphabet said in its statement. “By scaling its investments, the company seeks to expand its foundational infrastructure to support the significant growth opportunity ahead.”

The company added that the stock plan represented a way to “fund its investments in a balanced way while retaining a healthy balance sheet.”

Like other tech giants, Google has announced plans for a massive investment in compute this year, the likes of which will be used to support a flurry of new AI services. At Google I/O last month, CEO Sundar Pichai said that the company expects to spend between $180 and $190 billion on capex before the year is out. Google and other tech giants are expected to spend as much as $700 billion this year on AI capex.

#Alphabet #plans #raise #billion #pay #buildout #TechCrunchAI,Alphabet,compute,Google

Post Comment