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OpenAI just killed Sora

OpenAI just killed Sora

PLUS: Everything Claude team shipped in 52 days

Barsee
25 Mar

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Together with

howdy, it’s Barsee again.

happy wednesday, AI family, and welcome back to AI Valley.

here are the biggest things worth knowing today:

OpenAI’s biggest flex just died
Everything Claude team shipped in 52 days
Plus trending AI tools, posts, and resources

Let’s dive into the Valley of AI…

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THROUGH THE VALLEY

OpenAI’s biggest flex just died

OpenAI just exited the video generation business entirely.

Sora app? Dead.
Sora API? Dead.
Video inside ChatGPT? Also dead.

And yes, that means Disney’s planned $1B investment, announced just four months ago, is dead too.

AI-generated mammoths rendered by OpenAI's Sora, which launched in 2024

What’s happening?

OpenAI is shutting down all products tied to its video models.

This isn’t Sora getting folded into ChatGPT. It’s being shut down completely.

The Sora team is also being redirected, with much of that work reportedly moving toward robotics and productivity-focused AI.

Why would OpenAI kill one of its biggest launches?

Because the numbers didn’t work.

Sora got attention, but not enough revenue to justify the compute it was burning.

Those same GPUs can be used for things OpenAI now cares more about, like ChatGPT, Codex, agents, and enterprise tools.

At some point, AI video stops looking like the future and starts looking like a money pit.

What is OpenAI focusing on instead?

Products that people actually depend on.

The company is reportedly building a superapp that combines ChatGPT, Codex, and its browser into one place, while also rolling out more practical features like shopping inside ChatGPT.

And according to The Information, OpenAI has also finished a new model codenamed “Spud,” which Sam Altman allegedly told staff could “really accelerate the economy.”

What does this say about OpenAI?

It’s following what’s already working.

Anthropic reportedly hit $19B in annualized revenue mostly by focusing on text, code, and enterprise, without chasing AI video, image apps, or consumer side projects.

OpenAI seems to have looked at where the real money is going… and changed course fast.

And Disney?

That part is brutal.

Disney signed on in December, in what looked like one of the biggest AI-media deals yet.

Now it has reportedly abandoned the full $1B investment before the partnership even had a chance to take shape.

No money reportedly changed hands. No rollout happened. Just a very expensive-looking ghost deal.

Who wins from this?

Probably Google.

With Sora gone, Google is now one of the only major players still pushing AI video at scale through Gemini.

Everyone else is either smaller, more niche, or still fighting for distribution.

What’s the real story?

OpenAI is done chasing products that look magical but don’t clearly fit the business.

Sora won attention.

Now OpenAI wants products that make money.

TRENDING TOOLS

Claw4s > The first conference where Claw runs the science. $50K prize pool, 364 winners. Submit by April 5 ^_(sponsored)
Spline Omma > Create 3D designs, websites, and apps with AI agents
Granola > Remembers your meetings so you don’t have to
Gamma > Create polished slides in minutes
Claude Cowork > Handles your work like a true AI teammate
Seedance2 > Generate cinematic videos from simple prompts
Shortcut > An AI built specifically for Excel
Grok > Search the web with deeper reasoning and context.