In a surprising move on 25 March 2026, OpenAI's CEO Sam Altman announced the closure of Sora, a tool used to generate AI video content using the firm's technological resources.

More surprisingly, Sora benefited from multiple updates recently with the integration into Bing Video at the beginning of March.

In this article, we’ll try to uncover the reasons that pushed the OpenAI currently valued at 840$ billion of dollars to end Sora.

The cost to generate video is quite high

In case you weren't aware, using generative AI requires a variety of resources in order to enable the models to respond to user prompts. Large models such as GPT-4 have billions of parameters, for example. The larger the model, the greater the energy requirement.

Generating AI video requires significantly more energy than generating simple text. Users usually demand high pixel resolution (1080p to 4K). Building a frame also requires temporal consistency to ensure that the frames flow smoothly.

As an example, a 10-second 30 fps 1080p video (300 frames) could use roughly 60–150 kWh if using a large video-generation model naively. That’s equivalent to running a 100W light bulb continuously for 25–60 days.

A strategic shift from OpenAI to focus on generating revenue

onsequently, OpenAI, through the voice of Sam Altman, is now prioritizing AI fields with higher potential ROI, such as Codex, a product designed to support software development.

The company also plans to allocate more resources toward developing AI agents capable of autonomously managing multiple tasks based on user prompts. Businesses recognise the value of leveraging agentic AI to boost employee productivity, allowing staff to focus on higher-value work.

Previously, OpenAI had reached a $1 billion agreement with Disney Corp to enable its models to generate images and videos featuring Disney’s licensed characters and universes—a deal that has since been suspended.

These factors ultimately convinced the startup to discontinue Sora and reinvest resources in projects with higher revenue potential, while simultaneously reducing operational overhead.

Indeed, while OpenAI is valued at $840 billion, it remains relatively small compared to competitors like Google and Meta. Sam Altman’s organisation consistently requires funding to stay at the forefront of AI innovation and maintain its position as a key player in the AI landscape.

In this context, they haven’t ruled out monetising ChatGPT, for example, by integrating publicity to generate substantial revenue given its widespread usage more than three years after its launch.

In terms of AI video and Sora, it's probably taking a step back while waiting for new use cases to emerge and, more importantly, for improvements to AI models that could lead to more energy-efficient and affordable AI video.