OpenAI Announces Retirement of Sora App Amid Setbacks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 31 2026
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Retirement of Sora App: OpenAI's decision to retire the Sora app comes after it failed to find product-market fit, with user numbers declining sharply despite initial interest, leading to operational costs of $15 million per day against total revenues of only $2.1 million, highlighting unsustainable business practices.
- Hollywood's Tepid Response: Despite a partnership with Disney, Hollywood's lukewarm reception to Sora reflects concerns over job losses and intellectual property theft, indicating a broader industry reluctance to embrace AI-generated content, which further limits Sora's market potential.
- Alphabet's Clear Advantage: The discontinuation of Sora is seen as a win for Alphabet, which is aggressively investing in AI infrastructure with projected expenditures of $175 billion to $185 billion, enhancing its competitive edge against OpenAI and Anthropic in the AI landscape.
- Challenges for OpenAI: The end of Sora signifies mounting pressures on OpenAI as it competes with Anthropic and Alphabet, particularly as the company is expected to burn over $17 billion in cash this year, potentially shaking investor confidence in its future viability.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 305.460
Low
305.00
Averages
374.25
High
400.00
Current: 305.460
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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