OpenAI Cancels Video Dreams, Raises $10B to Afford Coffee Break
KEY POINTS
- •On Tuesday, OpenAI abruptly canceled its video-generation app called Sora due to unsustainable costs.
- •They ended a $1 billion partnership with Disney and reshuffled a senior executive's role amidst the upheaval.
- •To stabilize finances, OpenAI raised an additional $10 billion, pushing total funding over $120 billion.
On a Tuesday where most people just wrestle with traffic, OpenAI storyboarded chaos: They killed Sora—their video-gen app that apparently gobbled up AI compute like a hungry toddler at Thanksgiving—just months after launch. Adding insult to fiscal injury, OpenAI yanked the $1 billion Disney deal faster than Mickey can say 'Mouseketeer.' Meanwhile, they shuffled a top exec's role because who wouldn’t want a promotion during a financial hurricane? To patch the money black hole, OpenAI pulled $10 billion in fresh investor cash, swelling their funding mountain to a staggering $120 billion. Sam Altman probably needed a stiff drink after this rollercoaster Tuesday.
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(1 of 3)OpenAI killed its video app and broke up with Disney, then raised $10B just to keep the lights on—because AI losing billions is the new startup hobby.
OpenAI quietly admitted it spent a fortune on an app nobody asked for, then begged investors for $10 billion like a billionaire charity case.
When a $1 billion Disney deal isn’t enough to keep your AI dream alive, just raise $10 billion more and call it a pivot.
Source: Theverge | Published: 3/28/2026 | Author: Hayden Field
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