AI News

Did OpenAI Just Indirectly Admit the AI Bubble is About to Pop?

For more than a year, plenty of industry stakeholders have insisted there is no AI bubble. So, therefore, it will not pop. It cannot pop. There is nothing to pop. It will continue to scale and scale, and scale some more. Skeptics have long sung a different tune. Their melody is louder and carrying further than ever in the aftermath of OpenAI shuddering Sora, its generative video platform that lured in investors such as Disney—which has since exited its $1 billion deal with the company. This move caught many by surprise given how much OpenAI has poured into it. Yet, it is being framed in many circles as a reorientation of its business model. The demand for Sora’s supply flatlined, if it ever existed, the theory goes. By this logic, OpenAI is smart to redouble its focus on other products. Truth be told, given AI’s agentic scope at the moment, the business-model recalibration hypothesis makes the most sense. At the same time, OpenAI and the rest of the industry at large does have other obstacles to clear when looking at their core and most accessed products.