OpenAI Shuts Down Sora After Losing $1 Million Daily

OpenAI announced the shutdown of Sora, its AI-driven video generation tool, on March 24, 2026. However, the real reason only emerged this Monday, March 30, when the Wall Street Journal reported that the project was losing about $1 million per day.

In essence, the high computational costs and low user retention made Sora unsustainable. The platform, which promised to turn text into realistic videos, never managed to break even, even with limited paid access. Meanwhile, OpenAI had already been indicating internally that it needed to cut projects that didn't generate quick returns.

The WSJ report, cited by Polymarket in a post that went viral on Monday, provided concrete numbers that few expected to see so soon. There were only six days between the official shutdown announcement and the disclosure of daily losses. This shows how quickly the company acted to prevent further damage.

Why Sora Didn't Succeed Economically

Video generation requires significantly more processing power than text or static images. Each short clip consumed expensive GPU resources, and although demand was high initially, it didn't last. Users tested, generated a few videos, and then returned to cheaper or free tools.

OpenAI's decision reflects a clear shift in strategy. After years of investing heavily in consumer products to gain visibility, the company is now prioritizing enterprise solutions and practical applications that businesses pay to use. The end of Sora is a strong public sign of this shift.

The video AI market remains hot, but the coming months will show which players can turn hype into actual revenue. Meanwhile, OpenAI continues to focus on autonomous agents and robotics, areas where return on investment is likely to appear more quickly.