OpenAI Unveils Sora to Challenge Meta and YouTube

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OpenAI Introduces AI-Powered Social Media App 'Sora'

OpenAI has unveiled a new social media application named ‘Sora,’ which enables users to generate and share videos using artificial intelligence (AI) with their friends. The app functions similarly to existing social networking platforms, where AI autonomously learns about the topics users are interested in and recommends similar videos. Its design is comparable to TikTok, Instagram Reels, or YouTube Shorts.

Industry experts suggest that OpenAI, known for popularizing AI through ChatGPT, is striving to transition into an AI service company and is now focusing on generating revenue. There are also predictions that the landscape of social media will shift from human-captured photos and videos to AI-generated content, moving from text and images to video-centric platforms. As multiple SNS platforms enhance their short-form and AI video-sharing features, OpenAI’s entry into this market is expected to heighten competition with established giants like YouTube, Instagram, and TikTok.

Features of the Sora App

OpenAI announced the launch of ‘Sora,’ a short-form video-focused social network, on the 30th (local time). Upon entering the app, users are presented with a video feed and can scroll through AI-generated videos from other users. They can create and post videos up to 10 seconds long. The app includes features such as a ‘Like’ button and comment input, similar to other SNS platforms. Users can remix others’ videos using AI functions, and the app introduces a ‘Cameo’ feature that inserts users’ appearances and voices into various videos after authentication. However, currently, users cannot upload videos or images from their smartphone photo albums or other apps. The service will initially be available in the U.S. and Canada before gradually expanding.

In addition to this, OpenAI has released an upgraded version of its video-generation AI, ‘Sora 2,’ which allows for higher-quality AI videos on the app. OpenAI explained that Sora 2 significantly improves realism compared to the previous model.

Why OpenAI Launched Sora

OpenAI, recognized for developing AI models like ChatGPT, is now directly pursuing revenue through Sora. In the first half of this year, OpenAI recorded $4.3 billion in sales, an operating loss of $7.8 billion, and a net loss of $13.5 billion. It spent $6.7 billion solely on research and development (R&D). The Sora app represents OpenAI’s first challenge to secure profitability through advertising, premium subscriptions, and social network-based models. OpenAI previously hired Gabor Cselle, a co-founder of the SNS platform ‘Pebble’ and an SNS expert.

The launch of a video- and image-centric SNS by OpenAI also reflects the shift in AI development competition from text-based models like chatbots to images and videos. As AI image-generation technology rapidly advances, realistic and consistent images are now being produced by platforms like Midjourney and Google’s ‘NanoBanaNa.’ OpenAI stated, “Just as AI chatbots evolved rapidly from GPT-1 to GPT-3.5, video AI has also advanced quickly, entering a phase of mass adoption.”

With OpenAI’s entry, competition in the AI video-sharing SNS market is expected to intensify. Big tech companies like Meta and Google have recently enhanced AI video features on their platforms. Meta added a video feed called ‘Vibes’ to its Meta AI app last week. Google integrated the Veo 2 model into YouTube Shorts, enabling creators to generate AI video clips. OpenAI is projected to act as a ‘strong catfish’ in this market, competing with Meta (Instagram Reels), Google (YouTube Shorts), and TikTok. Brian Novak, a Morgan Stanley analyst, said, “The Sora app will become a direct competitor to content platforms like Meta and Google.”

“Success Remains to Be Seen”

There are cautious views that OpenAI’s Sora success is yet to be determined. While OpenAI is actively pursuing revenue, additional costs for infrastructure like servers and GPUs could increase financial burdens. Moreover, the growing regulations on AI services in the U.S. may pose challenges for OpenAI as it expands its business into AI services.

The Wall Street Journal noted, “As the Sora app targets video platforms like TikTok and YouTube, controversies over copyright and creator rights infringement are inevitable.” AP News expressed concerns, stating, “Experts warn that the ‘Sora’ app could trigger an AI video flood, leading to an ‘AI slop’ (overflow of low-quality content) situation.”

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