OpenAI shut down its Sora video generation tool on March 25, 2026, mainly because the economics never worked: inference compute cost as much as $15 million a day, lifetime in-app revenue totaled only about $2.1 million, and 30-day user retention was just 1%. OpenAI is also trimming loss-making businesses ahead of a planned IPO in late 2026 and faces legal pressure from Hollywood over copyright and deepfakes. Sora's shutdown marks a major turning point as the AI industry shifts from visual generation to Agentic AI that executes work.
Many companies assume that “having AI” means they’ve gone digital. But ChatGPT is not the AI businesses actually need. Enterprise AI has to understand internal workflows, connect to knowledge bases, enforce permissions, and meet security and compliance requirements. It should be an intelligent assistant that proactively supports decisions and boosts efficiency, and it should come with both cloud and on-premise options.
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