OpenAI is reportedly planning to work with its Sora former head, potentially exchanging technology for equity in the new company

AT A GLANCE

The report says that OpenAI is negotiating with a company founded by Bill Peebles, proposing to exchange Sora technology cooperation for equity in the new company, but the agreement has not been finalized.

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OpenAI Shut down Sora Negotiating cooperation with its former head again, or exchanging technology for equity

Beating AI flash,OpenAI is currently Sora negotiating with the company founded by its former head, Bill Peebles, considering having it deeply rework the discontinued Sora model and develop software and services for filmmakers. If the partnership is reached,OpenAI will receive equity in the new company. However, the two sides have not finalized an agreement, and it is also unclear whether the model weights will be made available.

Behind this potential deal is the cost that OpenAI once heavily bet on but ultimately found difficult to bear. This year,March，Sora global user count continued to fall from a post-launch peak of approximately 1000000 to fewer than 500000, with daily losses of approximately 1000000 USD. Faced with high computing expenses,OpenAI decided to redirect resources toward ChatGPT, programming, and enterprise business, and therefore announced that it would abandon Sora，April 26 shut down its app and web version, and September 24 terminate its API service. Even the partnership under which Disney had originally planned to invest in 1000000000 USD and license 200 multiple characters fell through before the funds were transferred.

Now, the people who once oversaw Sora may take over the technology again. Peebles was the first author of the Diffusion Transformer (DiT) paper, and April said when leaving OpenAI that exploratory research needs room to operate outside the company's core product roadmap. He founded the company together with DreamWorks co-founder Jeffrey Katzenberg and former Dropbox CFO Sujay Jaswa.September months later, the company also planned to train a video model from scratch and discussed financing with investment institutions including a16z. 1 months later, it began seeking to directly use Sora. If a deal is reached, it could save part of the investment required to train a model from scratch.

Katzenberg previously founded the short-video platform Quibi, raised 1750000000 USD, but announced its closure just half a year after launch because it had too few paying users. Now he is betting on video again, shifting the target from competing for ordinary viewers to serving professional filmmakers. For OpenAI, this means an opportunity to convert shelved R&D results into equity returns; for the new company, it can combine existing model technology with Hollywood resources to seek professional customers with greater willingness to pay.

Original link https://m.theblockbeats.info/flash/371571

Key points

The original article states that OpenAI is negotiating with Sora a company founded by former head Bill Peebles.
The original article states that the two sides are considering reworking the discontinued Sora model to develop software and services for filmmakers.
The original article states that if the partnership is reached,OpenAI will receive equity in the new company.
The original article explicitly states that the two sides have not finalized an agreement, and it is unclear whether the model weights will be made available.
The original article states that Sora global user count this year March fell from a post-launch peak of approximately 1000000 to fewer than 500000, with daily losses of approximately 1000000 USD。
The original article states that the app and web version of Sora were shut down in April 26, and API service was September 24 terminated.
The original article states that Bill Peebles founded a company with Jeffrey Katzenberg and Sujay Jaswa.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

This is a potential partnership that remains under negotiation. The reported proposal is for a company founded by Bill Peebles to use Sora related technology to create products for filmmakers; if the partnership is ultimately reached,OpenAI will receive equity in the company. At this stage, the agreement, scope of technology access, and model-weight arrangements have not been determined.

Why it matters to readers

If the transaction is completed, the reportedly discontinued Sora model could gain a new path to commercialization, and OpenAI could also retain potential returns from the related technology through an equity stake; however, all of these outcomes depend on whether an agreement is signed and on the specific scope of authorization.

Beginners should view this as a commercial negotiation that has not yet been implemented, rather than as a completed investment or product launch. Key points to watch are an official announcement, the equity terms, and the extent to which Sora technology will actually be made available.

Risks and unknowns

The report does not provide OpenAI or an official announcement from the company founded by Bill Peebles.
It is uncertain whether the two sides will sign an agreement.
OpenAI The amount of equity and the specific terms of the equity arrangement have not been disclosed.
It is uncertain whether the model weights will be made available.
The user figures, losses, downtime, and Disney partnership reported in the article lack independent confirmation.

OpenAI is reportedly planning to work with its Sora former head, potentially exchanging technology for equity in the new company

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