AI Startup OpenAI Abandons Promising Projects Amid Financial Concerns

A.I. startup OpenAI is shutting down its video-generation model, Sora, just six months after launching a mobile app and inking deals with Disney and other major partners. This move comes as the company winds down ChatGPT’s video functionality and takes all animation APIs offline. Instead, OpenAI is introducing “Spud,” an upcoming model that promises to accelerate the economy. The decision marks a significant shift for OpenAI, which has been struggling financially and facing growing criticism from its business partners.

Source: https://slate.com/technology/2026/03/ai-openai-sam-altman-disney-sora-shutdown.html