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.
The Agentic AI Foundation (AAIF) is here, and in a rare move, OpenAI, Google, Anthropic and other tech giants have joined forces to build open-source standards for agentic AI. This piece unpacks why AAIF was formed, its core projects, and what it means for the future AI ecosystem.
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