The Town with Matthew Belloni Sora Is Dead: What Does That Mean for Disney? Plus, ‘The Bachelorette’ Scandal.
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Mar 25, 2026 
Alex Heath, tech reporter and author of the Sources newsletter, breaks down OpenAI's sudden shutdown of video app Sora and why priorities shifted from consumer video to enterprise and coding. He discusses Hollywood’s reaction, Disney’s options after the pullout, and how Epic Games’ layoffs could reshape Disney’s gaming investments. A separate segment covers fallout from a major reality TV scandal and its business consequences.
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AI Labs Prioritize Coding Over Entertainment
- OpenAI's Sora shutdown shows AI labs deprioritize entertainment when compute and coding compete for resources.
- Alex Heath explains OpenAI is reallocating GPUs to enterprise and coding work, making Sora a 'side quest' casualty.
Host Tested Sora With Celebrity Likeness Video
- Matt Belloni recounts downloading Sora and making a video of Wednesday Addams dining with Peter Griffin that used Jenna Ortega's likeness.
- The example illustrates how early Sora enabled rapid copyrighted-character and actor likeness generation.
GPU Shortages Drive AI Product Priorities
- GPU scarcity drives strategic choices at AI companies and forces rapid cancellation of expensive multimodal projects.
- Heath notes GPUs are limited, costly, and labs must choose projects that advance coding and AGI roadmaps over novelty apps.