OpenAI plans to shut down the Sora video platform, and its nonprofit division hopes to spend $1 billion in 2026.

OpenAI plans to shut down its video platform Sora. This product attracted widespread attention when it was launched last year, but has since faded from public view. This move is part of a series of adjustments by OpenAI to refocus on business and programming functions, ahead of a possible IPO as early as the fourth quarter this year. The company's CEO, Sam Altman, informed employees internally on Tuesday that the company will gradually phase out products based on its video model. In addition to consumer-oriented applications, OpenAI will also stop the developer version of Sora and cease support for video features in ChatGPT. Currently, OpenAI is undergoing a strategic transformation, reallocating computing resources and key talent to so-called "productivity tools," catering to both enterprise clients and individual users. Last week, the company announced it would integrate the ChatGPT desktop app, coding tool Codex, and browser into a "super app," aiming to enable staff collaboration around a unified vision through this consolidation. Sora was launched in September last year, intended to expand OpenAI's influence on the consumer side by creating a social content stream similar to short video platforms, allowing users to share AI-generated video content. Shortly after the product launch, Altman encouraged users to try editing him into various classic film or pop culture scenes. However, some employees at the time were surprised by the large amount of computing resources invested in the product, as market demand for it was unclear. But Altman wanted the company to stay ambitious on its product roadmap and simultaneously announced plans to launch AI hardware devices in the coming years. The shutdown of Sora is seen as a correction to OpenAI’s previous product strategy, which had seen multiple products launched, leading to organizational complexity and scattered priorities. In addition, Sora lacked adequate copyright protection measures at launch, causing a brief copyright controversy. The company then added controls allowing content owners to block the use of their likeness or intellectual property. In December last year, Disney announced an investment of $1 billion in OpenAI. According to the agreement, OpenAI was to receive authorization for more than 200 Disney characters, allowing users to generate and share videos featuring these classic characters. However, the investment will no longer go forward. Disney said: "As the AI industry, still in its early stages, evolves rapidly, we respect OpenAI's decision to exit video generation and focus on other directions." Altman stated that the Sora team will next turn to longer-term projects such as robotics. Meanwhile, OpenAI is trying to catch up to its startup competitor Anthropic, vying for programmers and enterprise clients. At an all-hands meeting earlier this month, the company's head of apps, Fidji Simo, said employees could no longer be distracted by "side tasks," and proposed strengthening so-called "agentic capabilities" in products. "Agentic systems" refer to AI software able to autonomously run on users' computers and execute various tasks, such as coding or data analysis. On the same day, The Information reported that OpenAI completed initial development of a new AI model. Also, Altman will no longer directly supervise the company’s safety team, shifting his focus to fundraising and supply chain, building data centers. OpenAI’s nonprofit arm aims for $1 billion in spending in 2026 OpenAI plans to invest $1 billion this year through its nonprofit arm in various AI-related projects. Only months after the transition to a more traditional for-profit corporate structure, this will greatly increase its philanthropic efforts. The OpenAI Foundation stated that its 2026 spending will focus on helping society guard against potential AI risks (such as biological threats), while also supporting AI-driven life sciences projects. The funds will be distributed via grants and projects. The company has also made key executive appointments to lead its nonprofit arm. Wojciech Zaremba will head AI resilience projects, focusing on the technology’s impact on biosafety and overall safety; Jacob Trefethen, formerly at Coefficient Giving, will lead life sciences initiatives. Early priorities include using AI to accelerate research on diseases such as Alzheimer’s. As part of the company’s restructuring late last year, OpenAI’s nonprofit arm received a 26% equity stake. Based on then-current valuations, the stake was worth about $130 billion, making the foundation one of the world’s most valuable charitable organizations on paper. Furthermore, the nonprofit also received a warrant: if the for-profit entity’s share price rises more than tenfold within the next 15 years, it will have the right to receive additional shares, with the exact amount undisclosed. Since OpenAI was originally founded over ten years ago as a nonprofit research lab, the future role of its nonprofit arm has become a key issue as regulators review its restructuring plans. Attorneys General in Delaware and California both want to ensure OpenAI’s vast resources serve the public interest. Previously, OpenAI announced that its foundation would invest $25 billion in the coming years to drive healthcare breakthroughs and address potential impacts of AI. However, while the restructured nonprofit arm is gradually taking shape, its ability to quickly scale up spending remains to be seen. By comparison, according to the latest tax filings, OpenAI donated just $7.5 million through its nonprofit arm in 2024. The largest single donation was $1 million, given to the Meridian Institute’s AI Safety Fund, which subsequently announced its closure and layoffs. In December last year, the OpenAI Foundation said it distributed $40.5 million in grants to 208 nonprofit organizations across the US. On personnel, OpenAI has brought in several senior executives to help manage the foundation. Former Twitter executive Robert Kaiden will serve as CFO; OpenAI executive Anna Makanju will lead a new department overseeing charitable giving. The foundation is also actively seeking an executive director. The OpenAI Foundation also stated it is working with civil society experts, businesses, and economists to study the impact of AI on employment, and will invest “substantial resources” in the most promising solutions, with further details expected in the coming weeks. 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