Source: Afterthoughts…
OpenAI’s decision to deprioritize Sora—a generative video model burning $1M daily—reflects the economics of frontier AI development: not every capability that technically works deserves commercialization when the infrastructure costs and training overhead cannibalize resources needed for core products. The shutdown shows a market correction against the “move fast and release everything approach, where companies must choose between breadth of capabilities and depth of competitive advantage. OpenAI chose to double down on its text and image dominance rather than spread thin across video. The next phase of AI competition will be won through ruthless capital allocation and engineering efficiency, not feature proliferation.