OpenAI Shutters Sora App, Restructures Strategy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2026
0mins
Should l Buy MSFT?
Source: CNBC
- Closure of Sora App: OpenAI announced the shutdown of the Sora app, which achieved over one million downloads within five days of launch, reflecting the company's strategic retreat due to cost pressures amid its $730 billion valuation.
- Collaboration with Disney: Despite a three-year licensing agreement with Disney allowing users to create videos with over 200 characters, OpenAI's decision to exit the video generation space indicates a reevaluation of its future business direction.
- Shift in Strategic Focus: OpenAI is pivoting towards high-productivity enterprise applications, with CEO Fidji Simo emphasizing the need for the company to focus on execution, particularly in competition with rivals like Anthropic.
- Cost Control Measures: To maintain its valuation, OpenAI is cutting expenses, shelving ambitious projects, and planning to consolidate multiple applications into a single desktop super app, reflecting a reassessment of its future profitability model.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
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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- Strategic Shift: Microsoft is transitioning Copilot to a multi-model agentic product, introducing new features like Council and Critique aimed at enhancing user experience and increasing market appeal, which could improve its performance among enterprise users.
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