

I suspect it’s that they got eclipsed by ByteDance with Seedance 2.0.
The video for that model is really good and makes Sora look pretty meh, and it may have been that current work on a next gen Sora wasn’t going to be competitive enough.
The worst thing a lab can do right now is look like they are falling behind (i.e. Meta), especially with OpenAI planning for an IPO.
So on top of the lackluster “social media” offering tied to Sora they decided to shutter the entire product line of video and pivot to enterprise (where they’ve already lost significant market share to Anthropic).
They’re in a pretty meh place at the moment overall tbh. I’m skeptical they’ll recover.
(But I wouldn’t mistake their fumbling for an industry wide shift on AI in general or even video AI.)
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.