00:00 Speaker A
Open AI kills Sora. Here’s the journal. They weigh in, they have this story. The sudden fall of Open AI’s most hyped product since Chat GBT, they say it’s video generation tool Sora. How do you look at this story? How did this go from like massive hype to getting shut down?
00:27 Dan
I think it’s two things. It’s uh them refocusing. They obviously realized they have to do that. So saying uh we’re going to cut back on the the extras. Um and I also think you can’t dismiss what Google’s done with its own video generation capabilities, right? It’s and it’s and its photo manipulation tools. I I think they came in with Nano banana, you know, and people were just like, what was Sora? You know, and it’s it’s it’s it’s definitely something where the lead idea here is Open AI cutting back, right? You know, and and trying to ensure that they’re able to compete and make that money back, right? And that’s the big question that everybody still has is, how are you guys going to pay for all of this? You know, and then we’ll, okay, what does that mean for, you know, Oracle or what does that mean for, you know, Microsoft? You you guys have to pay for what you’re you’re spending. Um And so I I think that that’s where all of this goes. I also, you know, I mean, it’s just to me the the idea of AI being used in art to a degree makes sense. You would use something like Photoshop, but then just wholesale saying, all right, make, you know, the new Disney movie in this. It’s just like, okay, well, I don’t want to watch that, right? Like there’s there’s no artistry and just saying that to me, you know. Um so I I I do kind of fall on the side of just not being a fan of of the full AI developed video. But that’s just me and I’m just one guy.
01:45 Speaker A
So Boban you kind of agree with Dan, this was just Sam Altman getting his company potentially ready for a public debut. You get more focused.
01:54 Boban
Yeah, you get more focused, but I think Dan made a great point before. It’s it’s also about monetization and there there was just no path to clear monetization for for Sora, right? And I think the other thing was the use of GPU, the use of memory, you might want to allocate that to to enterprise, right? To larger piece of the pie and I think that’s what made the decision.
02:14 Speaker A
Is that is that sort of is the broader story you two, Dan, that the real monetization is ultimately going to be agents, enterprise, not maybe a flashy consumer tool?
02:24 Dan
It is. That’s that’s where that’s where I think most people believe it’s going at this point. It seems as though, you know, the the whole idea with Sora and things along those lines were let’s see what sticks, right? We’ll just throw everything at the wall and see see what ends up sticking. And it seems as though agents are really what everybody is most excited about now. And granted that was something that, you know, 2025 was supposed to be the year of agents and, you know, it it it started, you know, to to gain speed, but now it’s I think really starting to take off. You have open claw people, you know, apparently Mac Minis are impossible to get in San Francisco. Uh people went out and bought them so that they could run their own open claw, you know, instances on on their, you know, their their own Mac Minis and so, you know, that I think shows that the interest is absolutely there. I think you also got to take into account the fact that, you know, while GPUs are still very important uh when it comes to AI that the the agentic side of things will also be good for CPUs, obviously because you know, the the GPU may be running the AI, but the processes that the AI is is performing are based on CPUs. So those will continue to kind of see that benefit. We’re seeing that with, you know, obviously ARM announced their own CPU. Uh Nvidia has a new CPU rack. obviously, you know, AMD and Intel are already there. So it’s it’s it’s one of those things that’s very interesting to see this kind of evolution of AI. I think that that idea with Sora was just, hey, look how cool this is. You can make, you know, I don’t know, like a banana flag or something. I don’t know.
