AI Summary
The Wall Street Millennial analyzes OpenAI's decision to shut down its Sora video generation app on March 24th, 2026, after incurring billions in computing costs with minimal revenue. The presenter highlights OpenAI CEO Sam Altman's history of announcing ambitious, unfulfilled deals, such as the Stargate Argentina project and a $100 billion Nvidia investment. A key focus is the failed partnership with Disney, announced on December 11th, 2025, which promised a $1 billion equity investment from Disney and revenue sharing from Sora users generating videos with Disney characters. This investment never materialized because Sora, despite 9.6 million downloads, generated negligible revenue, peaking at $540,000 in December 2025 and declining to $367,000 in January 2026, leading the presenter to label it an "obvious flop" and one of the "dumbest and most wasteful ventures in business history." OpenAI is now pivoting back to robotics, a field it abandoned in 2020 to focus on large language models. This pivot is supported by an internal memo from Sam Altman, a January 15th, 2026 press release seeking robotics suppliers, and active hiring of robotics engineers. Altman has long expressed interest in humanoid robots, and OpenAI's startup fund has invested in 1x Home Robotics and Figure AI, both of which the presenter deems "failures" due to poor demonstrations and misleading videos. The presenter concludes that creating autonomous humanoid robots capable of useful tasks is not feasible with current technology and predicts OpenAI's efforts will result in staged PR demonstrations rather than functional products, similar to Tesla's Optimus robot.
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