Modern CTO TECH IN THE MORNING: OpenAI Axes Sora, Disney Pulls Out, and Slop Dominates
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Mar 30, 2026 They dig into OpenAI shutting down Sora and why consumer demand and costs mattered. They explore how AI-generated video fuels misinformation and creates fake war and disaster clips. They debate whether instant AI movies would replace favorites and whether unlabeled deepfakes will become indistinguishable. They argue AI might boost appetite for real, in-person experiences amid a flood of short-form slop.
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Sora Closed After Low Demand And High Costs
- OpenAI shut down Sora because consumer demand and economics didn't justify its high compute and legal costs.
- Josh and Joel note downloads plunged 45% after its standalone app launch, and Disney's billion-dollar deal was dropped amid lawsuits and expense.
Sora Is One Failure In A Crowded AI Video Market
- Sora's shutdown doesn't end AI video; many competitors like Runway and Google continue to develop generative video.
- Joel emphasizes the space remains active with multiple companies pushing GenAI video despite one product's failure.
People Prefer Passive Slop Over Generating AI Movies
- Consumers prefer passive, low-effort content over actively generating media, so demand for self-generated movies remained low.
- Joel and Josh contrast ease of ChatGPT subscriptions with limited appetite to download and create AI movies themselves.