According to Variety, Disney has canceled a USD1 billion (~RM3.95 billion) investment in OpenAI to use Sora technology after the generative artificial intelligence (AI) model was discontinued today. That said, what should you know about it?
OpenAI has suffered huge losses
For your information, the investment was announced in December last year as part of a settlement over claims that Sora infringed on Disney's intellectual property. Several Disney characters were also licensed to Sora, allowing them to be generated by users.
Although Sora went viral with a high number of users, not many users subscribed. OpenAI reportedly lost USD15 million (~RM59.3 million) a day because the videos were generated for free. Sora was the first product to be discontinued by OpenAI.
With economic pressures from the Middle East conflict and OpenAI making major investments in building data centers, continuing to burn money through Sora may not be the best option. This week, reports emerged that OpenAI will focus on enterprise customers and productivity applications to increase revenue.
Stay tuned to TechNave.com for more updates like this.
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