Tag: AI economics

OpenAI shut down Sora and quickly acquired TBPN, signaling a shift away from high-cost consumer AI products toward owning low-cost, high-impact distribution. Sora failed due to unsustainable compute economics and lack of durable distribution, while TBPN offers a fixed, valuable…

OpenAI is shutting down Sora, exiting consumer AI video after failing to align its high compute costs with a scalable revenue model, despite strong demand and cultural traction. The move reflects a strategic pivot toward robotics, simulation, and enterprise use…