OpenAI shuts down Sora API as Google expands free AI video access

OpenAI has officially shut down its Sora API, marking the end of its ambitious venture into the AI video market. The shutdown, completed on September 24, follows the earlier discontinuation of Sora’s web and app interfaces in April. Internal reports indicate the platform faced high operational costs, reaching approximately $1 million per day, while its user base declined from 1 million to fewer than 500,000. CEO Sam Altman has reportedly shifted focus toward the company’s core chatbot business and increasing competition with Anthropic.

This retreat occurs as Google expands its AI video capabilities. On September 23, Google announced that users with a standard Google Account can now access AI-generated 1080p video through Google Vids for free, utilizing Gemini Omni. This strategy integrates video generation directly into the existing Google ecosystem, including Drive and Docs.

In the wake of OpenAI’s exit, industry figures are moving to fill the void. Jeffrey Katzenberg, co-founder of DreamWorks, is reportedly preparing to launch a new venture focused on AI video models for professional filmmakers. The startup is expected to include former OpenAI lead Bill Peebles and former Dropbox CFO Sujay Jaswa, with potential backing from Andreessen Horowitz.