Why OpenAI killed Sora just months after launch

OpenAI has pulled the plug on its AI video-generation tool Sora just months after its public debut, with a new report suggesting the move was driven by soaring costs and weak adoption rather than data concerns.

According to findings reported by The Wall Street Journal, Sora’s user base peaked at around one million before dropping to fewer than 500,000. 

At the same time, the platform was reportedly costing OpenAI roughly $1 million per day to operate — largely due to the heavy computing power required for video generation.

Unlike text-based AI tools, video models consume vast amounts of processing resources, meaning even moderate usage can strain infrastructure. 

Each generated clip draws on limited AI chips, making scalability a significant challenge.

The report also highlights growing competitive pressure from rivals such as Anthropic. 

Its coding-focused tools, including Claude Code, have gained traction among developers and enterprise clients — key segments for long-term revenue growth.

Faced with these realities, OpenAI CEO Sam Altman reportedly opted to shut down Sora to reallocate computing resources toward more strategic priorities in the intensifying AI race.

The decision appears to have come swiftly. The report claims The Walt Disney Company, which had committed around $1 billion to a partnership tied to the project, was informed less than an hour before the public announcement.

Sora’s shutdown underscores the high stakes and rapid pivots shaping the AI industry, where even high-profile products can be shelved quickly if they fail to deliver sustainable growth.