Disney canceled a $1 billion investment in OpenAI to use Sora technology after the generative artificial intelligence (AI) model was discontinued today. The investment was announced in December last year as part of a settlement to the issue of Sora infringing Disney's intellectual property. Several Disney characters were also licensed to Sora so that it could be generated by users.
While Sora went viral with a large number of users, not many users subscribed. OpenAI is reportedly losing $15 million a day because the videos were generated for free. Sora was the first product to be discontinued by OpenAI.
With the economic pressure from the Middle East conflict and OpenAI investing heavily in building data centers, continuing to burn money through Sora may not be the best option. This week, it was reported that OpenAI will focus on enterprise customers and productivity applications to increase revenue.
