
It’s true! Analyst estimates suggested OpenAI could be spending up to ~$15 million per day on Sora compute, which would be billions annually at scale. At the same time, OpenAI admitted usage was much higher than expected and that the economics were “completely unsustainable” under the original pricing model. Video generation is especially costly because each clip requires massive GPU compute, and longer videos increase cost non-linearly. So the issue wasn’t demand it was that demand was too high
The actual numbers don’t agree with the claim that “the demand for Sora was too high.” It saw a successful launch and then nothing but a decrease in adoption after that. And logically, why would OpenAI shut down one of their products for being “too in-demand?” Doesn’t make sense. It was costly to maintain, no one used it, and created nothing but slop. OpenAI has already stated that they are moving away from the AI video generation business to focus more on code, like Anthropic is.
My point is that the so-called “demand” for Sora didn’t even meet OpenAI’s own expectations post-launch, as its userbase was consistently shrinking by huge amounts every month. And even with fewer users than they hoped, OpenAI was still hemorrhaging money on it. By comparison, ChatGPT is also notoriously unprofitable for the company, but its userbase is vast enough to justify the continued support of it in hopes of becoming truly profitable in the future. This could not have been said for Sora.
In short, saying Sora was “too in-demand” implies that it had droves of people lining up to use it, and maintaining it was too costly. Instead, hardly anyone used it in comparison to OpenAI’s other services, AND it was still too costly anyway. And then Disney backed out of the deal and that’s just not a good look.
Huh, good points. Thanks for teaching. The comparison to justifying keeping chat gpt while having the same cost issue made a lot of sense as to why Sora was shut down. I feel like there are also a lot more rivals of sora that work as good or better than it, but chat gpt is still outperforming other models. Chat gpt has also become mainstream and every day lingo with people saying “just ask chat” similar to how people started saying “just google it”. Sora never reached that level of public eye
Yeah, the competitors didn’t help Sora’s case either. But one problem that all AI image and video platforms face is that copyright wise, they are a legal nightmare. That’s why AI proponents were so jazzed about the Disney deal; it was supposed to prove to the world that AI would “take over Hollywood and replace artists” or something. With that deal falling through and Disney citing concerns that just associating their IP with AI could cheapen them, this is a huge blow to that whole narrative.