cross-posted from: https://lemmy.world/post/44699253
This is clearly a sign that the product failed to draw in enough customers and its viability was overhyped.
Hopefully, it is the start of the AI bubble bursting.
Middle school interships?
Openai is the canary
So many people seem to have no idea what they’re talking about. This isn’t ending AI video creation, it just cost them a lot of money to offer it. You can generate a video on your own computer already. AI video isn’t going away because one company isn’t letting people do it on their servers for free any more.
Didn’t realise you could do it locally, just checked online and there’s several options. So why are these fuckers building huge, resource-greedy data centres. . ?
Waiting for Ed zitron to repost this with this image attached 😂
Maybe time to move retirement accounts into cash.
Move it to precious metals or assets that historically average flatter value through crashes. The dollar is highly volatile in economic crisis.
Cash will lose value just exactly as the money in your account.
I’d do this but its probably the wrong move. I tend to go with the steam method: do nothing while everyone else scrambles, profit.
Or invest in non-US to keep them safe. Like Norwegian funds while the orange is oranging to gain on the oil price boom, and then spread out to European and emerging markets when he has his first public stroke in a few months.
It was used almost exclusively for slop and slop-based ads or videos that shouldn’t be slop. I was on there yesterday and some account had 2 videos of a woman in front of a plain wall talking for 15 seconds about tax implications for investments. A real human could have filed it with an iphone in 3 minutes.
But now that’s Google and Grok’s problems, I guess.
If the audio and video is AI-generated I’m going to assume that the script is, too.
I’ve had to do training at work that I’m fairly certain was mostly AI generated. The pics and audio seemed to be. And even the questions that I had to get right in order to complete the training… Some of them just weren’t covered in the training. Come on
Oh no…stop…don’t go…/s
Let me get this straight: Disney was supposed to give Openai license for their characters, and on top of that invest billion dollars in the Openai? The money literally went the wrong way
Not really. Disney management has drunken the same Koolaid as any other management right now: they believe they can fire large parts of their staff and replace them with “AI”, allowing them to achieve similar or even greater productivity at a fraction of the cost (i.e. whatever fee "open"AI charges). To achieve that, they need to give Sora access to their characters (so it can be trained to produce Disney movies) and invest in the company (as a down payment; money that would be recuperated by eliminating workers from the equation).
Bye Felicia
🪡
you mean giving away billions of dollars of computer with no monetisation strategy was bad? man who would have thought. not sam, apparently. if only there were like, some way to have realised that the goal of business is to earn money
Best news I’ve heard all day! POP THE SLOP
As someone who named their daughter Sora in 2021, this is the best news I’ve gotten this year.
Congrats! 🥳🥳🥳
OpenAI said it will discontinue Sora, the generative-AI video creation platform it launched in late 2024, without providing a reason for the decision.
That is the strongest indication this is the beginning of the end for the AI bubble. Sora burned a ton of processing power, with no clear value proposition, just to keep the hype cycle going a little longer. Shutting down without explanation leaves the most likely one: they are out of helium to pump into the balloon. And if that balloon isn’t inflating, it’s deflating.
It’s not and probably the opposite.
When Sora launched it was way ahead. Seedance 2’s release was notably better than any of the other video gen models, Sora included.
The market is getting commoditized because there’s no moat and OpenAI hasn’t led on pretty much any release for a while now other than Sora, which they’re probably falling behind on now.
This is the opposite of a burst from a tech standpoint, even if OpenAI as a company starts to pop.
TL;DR: This is likely happening because the tech accelerated across the industry in ways OpenAI can’t catch back up to, not because it’s lagging.
Isn’t spending billions of dollars with nothing to show for it in the end the definition of a popping bubble?
No, it’s called the basic business model for tech companies since years. Sadly.
A bubble popping would be when people start asking for their ROI or sell.
Upvoted for a different perspective, but I suspect it ends in the same place.
OpenAI is kept solvent by investor capital, and capital is kept flowing by the perception of OpenAI being the market leader. Seedance being a better model, enough to cause OpenAI to exit the market, still ruptures the perception of value. In a market with no clear profitability path, that’s ground falling away.
It also can’t be simply commoditized because generations (I’m sure even Seedance) are expensive and still not good enough for production use, even if 50% of their consumer base might boycott if a major studio even did use it in production. Commoditization can’t occur when there’s still no economically self-sustaining, market-acceptable “good enough” product. Without that, even if the leader changes, it’s a race between lemmings (sorry) off the cliff.
Yep - they briefly led in video gen but quickly were overtaken by other groups. There are even open source local models that perform really well now.
They could conceivably catch back up but how does that help them when their priority is chasing the AGI/ASI dragon?
this is the beginning of the end for the AI bubble
The end of the AI bubble has been beginning for years. The end of the beginning of the end of the bubble might take a few more years.
escalator up, elevator down
i agree that AI is a bubble of trash but shutting off a part that wasn’t worth the cost is not an indication of an end. They just reduced cost to extend the financial runway. From my point of view text and coding were more popular anyway.
It was a weak attempt to keep relevance when faced against Gemini and Claude. But it’s completely unnecessary now that OpenAI has contracted with the government. They get all that sweet tax payer money and get to repurpose a ton of GPUs making stupid videos to supporting that new gov contract.
Maybe you can only watch so many nonsense videos. I assume I’m sadly wrong though.
