Openai abruptly shuts down sora ai video app amid financial struggles

Published on 08/04/2026 22:36 • Abdullah Saad

OpenAI, the AI research organization behind the viral ChatGPT model, stunned the tech world last week by abruptly shutting down Sora, its AI-powered video generation app, just months after launching.

Financial strains prove too much for sora

Financial strains prove too much for sora

The decision, which caught many off guard, especially given the multimillion-dollar deal OpenAI had struck with Disney, has sparked a flurry of speculation about the reasons behind the sudden termination of the app. However, according to an investigation by The Wall Street Journal, the reality is far simpler – and more financially driven – than many of the conspiracy theories circulating online.

Sora, which attracted significant attention when it launched in February 2024, managed to grow to over a million users after its mobile app debut six months prior. Nevertheless, its average user count had stagnated at around 500,000 people, far below OpenAI's targets and a tiny fraction of the 900 million active weekly users, with 50 million paid subscribers, of its more famous ChatGPT tool.

Moreover, the costs of running Sora were extremely high, as video generation is one of the most resource-intensive AI tasks. Estimates put the daily expenditure at a whopping $1 million, leading to significant losses for OpenAI.

Resources to Fuel Other AI Projects

The shutdown of Sora also coincides with OpenAI's broader efforts to monetize its AI capabilities, particularly among businesses and developers, in a bid to stay ahead of rivals like Anthropic. Rather than idle, the computing power previously dedicated to Sora will now be harnessed for a new, professionally-focused tool internally known as Spud, which is still unannounced but expected to be a key part of OpenAI's growth strategy ahead of a potential IPO led by CEO Sam Altman.

In addition to Spud, OpenAI is also pushing into robotics and its enigmatic first hardware product, designed by Apple co-founder Jony Ive, leaving many to wonder what other innovations the company has in store.