OpenAI's Sora app saw rapidly declining usage while costing the company around one million dollars a day, according to the Wall Street Journal. After a hyped launch, the app grew to about one million users, but that number quickly dropped to around 500,000 and never recovered.
On top of the shrinking user base, OpenAI ran into copyright issues and growing internal concerns that the cheap, low-quality engagement videos people were generating could damage the OpenAI brand. Sora proved more liability than asset. Development costs piled up too. According to the report, OpenAI canceled training runs for new video models entirely.
The real nail in Sora's coffin was increasing competitive pressure from Anthropic. OpenAI chose to redirect its limited compute toward coding, enterprise, and agent-based AI products, areas with greater long-term business value. Sora fell victim to a strategic pivot: away from complex video generation, toward the most economically promising parts of the business. The Sora team will now focus on world models for robotics. The Sora app shuts down in April, with the API following in September.
