OpenAI shut down its Sora AI video tool after just 6 months because it lost $1 million daily despite low usage. After a big launch, users dropped from 1 million to under 500,000 worldwide. Video creation eats expensive AI chips, making every clip super costly to generate.

While OpenAI’s team fixed Sora bugs, rival Anthropic stole customers with better coding AI called Claude Code. CEO Sam Altman quickly ended Sora to save computing power for profitable projects.

 Even Disney’s $1 billion partnership got canceled—they found out only 1 hour before public announcement. People thought it was a sneaky data grab from face uploads, but it was just bad business. OpenAI now focuses on tools that actually make money instead of money pits. Sora’s failure shows video AI still too expensive for mass use today.