OpenAI shutters Sora, continues to burn money
OpenAI has burnt Sora, its AI TikTok clone, in the name of “focus”, and is back to fundraising, having lost Disney in the process.
OpenAI claims to be streamlining the number of projects it is working on, which sounds more like struggling to find something that anyone will pay for that could produce some cash. Currently, most of OpenAI’s products cost more than they can possibly generate in sales, and the company continues to burn billions.
Originally teased in early 2024, Sora launched as a standalone social video app in September 2025. It came with a TikTok-like feed and a “cameo” feature that let users insert themselves into AI-generated scenes.
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“Even with all of OpenAI’s resources, Sora could not attract and retain an engaged audience,” Patterson added.
OpenAI — valued at $840 billion, according to Yahoo Finance private markets data — is now heads down on the fundraising front.
Gotta keep the story alive long enough for someone to find an exit.
There were hundreds of automobile companies in the early 19th century. 20 years later, only a few were left standing. Same with canal builders in the early 1800's. Remember Pets. com?
The names change, but the pattern is familiar.