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Sora Isn't the only Thing OpenAI Shut Down This Month

OpenAI halted its age-verified erotic chatbot and closed Sora due to employee, investor concerns, legal risks, and strategic focus on enterprise products before a potential public offering.

  • OpenAI announced on Tuesday it is shutting down Sora, its AI-powered video app, and pausing the planned 'Adult Mode' for ChatGPT, marking a significant retreat from consumer-focused initiatives.
  • According to the Wall Street Journal, OpenAI is prioritizing business and enterprise products ahead of a potential public offering, while the 'Adult Mode' pause cites challenges with sexual datasets and eliminating illegal content.
  • Sora operated for only six months after launching in late 2024, and the shutdown comes despite a high-profile deal with Disney, undercutting earlier expansion plans.
  • The shutdowns represent a reality check for AI-powered video tools, as claims that these technologies would soon replace Hollywood face scrutiny amid OpenAI's measured retreat.
  • CNBC reported that OpenAI faces 14 lawsuits in California blaming ChatGPT for injuries or suicides, with risks outlined in investor documents as the company refines its focus.
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OpenAI turned off Sora on Tuesday. The most publicized artificial intelligence product of 2024 burned approximately $15 million a day in computing costs and generated $2.1 million in its entire existence. The downloads fell 66 percent in three months. Disney got out of a $1 billion investment that same afternoon, without a single dollar having changed hands. “We lack computing capacity,” OpenAI financial director Sarah Friar told Jim Cramer on n…

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InsideHook broke the news in on Saturday, March 28, 2026.
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