Investing.com — OpenAI on Tuesday unveiled Sora 2, its next-generation video and audio generation model, which the AI leader says represents a major leap in realism, physical accuracy, and controllability. Launched through a dedicated iOS app, Sora 2 arrives with the ability to synchronize dialogue and sound effects, while introducing users to immersive, AI-generated simulations that realistically adhere to the laws of physics.
Positioned as a “GPT-3.5 moment for video,” Sora 2 builds upon its February 2024 predecessor by showcasing complex feats that defied the abilities of previous models. OpenAI notes that earlier video models often distorted reality to satisfy prompts, but Sora 2 is designed to model failure and obey physical constraints, a core requirement in creating AI systems that understand the real world.
The new Sora app offers users the ability to drop lifelike video cameos of themselves into CGI environments, with facial and voice likeness captured through a one-time verification. Functioning more like a co-creative platform than a traditional social media app, it prioritizes user interactions and video creation over passive scrolling, with custom feeds and strict well-being safeguards baked in.
In early reactions, Wall Street has taken notice of Sora 2 as a potential disruptor. Shares of digital media incumbents slipped following the announcement: Snap Inc (NYSE:SNAP) dropped 8.2%, Reddit Inc (NYSE:RDDT) slid 4.8%, Meta Platforms Inc (NASDAQ:META) fell 1.3%, and Google parent Alphabet (NASDAQ:GOOGL) declined by 0.5%. “Our companies are in the business of competing for time and modifying consumer behavior. ChatGPT has modified and captured ‘search’ behavior with agentic offerings…and, if confirmed, we see this new Sora app as a direct competitor for consumer engagement/time/data against META, GOOGL/YouTube, TikTok, RDDT, SNAP and the other digital platforms,” Morgan Stanley wrote.
Still, analysts cautioned that toppling incumbents won’t be straightforward, given their entrenched reach. “Changing the behavior of hundreds of millions of people (in META/GOOGL’s cases, billions) is difficult,” they said. “For OpenAI to scale its social app, we think it will be important to provide a substantially differentiated (and better) user experience than leaders like META/GOOGL/YouTube.”
Morgan Stanley suggested smaller companies may feel the disruption earlier, given their limited generative AI capabilities. “Smaller platforms with less sophisticated next generation ML/GenAI offerings could face engagement headwinds faster if consumer adoption of diffusion/video creation tools ramps,” the firm added, flagging Reddit, Pinterest Inc (NYSE:PINS), and Snap as vulnerable.
