Top of the slop? The Sora slide could trigger an AI avalanche

OpenAI has unexpectedly shut down Sora, its generative AI video model. Despite a surge of initial popularity, the tech was dogged by controversy and copyright issues and proved prohibitively expensive. In a significant blow to OpenAI, a $1 billion December 2025 deal to allow Sora users to generate AI videos featuring Disney characters was canceled at the same time Sora was jettisoned. The company gave no reason for the shutdown, although analysts point to the dismal economics. With AI in the midst of what has all the appearances of a bubble, many wonder if the downfall of Sora could be the beginning of the end, especially as the war on Iran pressures supply chains and drives energy costs higher. Sora head Bill Peebles admitted that the platform's economics were 'completely unsustainable,' with costs estimated at $15 million per day. OpenAI is now reportedly prioritizing ChatGPT as it prepares for an IPO.