Wall Street Journal 2026-03-24-3
OpenAI Scraps Sora in Continued Push to Focus on Coding and 'Agent' Tools
OpenAI killed Sora six months after launch, alongside a $1B Disney deal with 200+ character licenses explicitly tied to video creation. The WSJ doesn't mention what happens to any of it. That silence matters more than the Sora announcement: it tells you partnerships and capital don't save products that fail the compute-to-value test. The deeper signal is the IPO as forcing function; Q4 2026 pressure is driving portfolio decisions that product logic alone didn't. Both frontier labs now converge on agentic coding with compute allocation to match, which means the consumer AI video market just lost its gravitational center.