OpenAI has announced that it has now ceased developing Sora and has thus cancelled any prospect of closing a $1 billion deal with Disney to legally use its intellectual property rights in creating AI video content. We had reported on the deal back in December, here.
OpenAI has framed the Sora shut down as being a commercial decision to re-allocate funding and development to other growing areas in AI. Though, speculation from stakeholders suggests that Sora’s realised revenue did not meet the initial high expectations. In a statement, OpenAI has announced that the technology used to teach AI will be repurposed into training physical robots.
With no funds having been exchanged between Disney and OpenAI, this abrupt conclusion to their dealings may not be such a sting in the tail. However, it does pose the question of how AI companies will traverse the intellectual property landscape, and whether creative talent would be receptive at all to being adapted in AI works. The conclusion of Sora may indeed be a wider indication of the creative industry’s growing contempt of AI usage, with developments in the law forthcoming after the UK government’s recent AI and copyright consultation.
It remains to be seen whether this is the catalyst for the bursting of the AI bubble, or is rather a strategic commercial decision prior to a near-future stock launch. Either way, the development of AI and how it navigates the realm of intellectual property law will continue to spark debate for rightsholders and investors alike.
If you have any questions on the above, or if you need any advice or support in respect of your own intellectual property, please do not hesitate to contact the team at McDaniels Law on 0191 281 4000 or legal@mcdanielslaw.com.
