# OpenAI may revive Sora video model in deal with new AI video startup

Digest AI · Generative AI & Models · published 2026-10-20T00:50:00Z

Canonical: https://digestai.news/story/openai-may-revive-sora-video-model-in-deal-with-new-ai-video-startup

## Summary

OpenAI shut down its Sora video‑generation service in April 2026 after a March announcement that the model’s compute demands were straining the company’s resources and its focus shifted toward enterprise AI, coding tools, and AGI work. A planned $1 billion Disney investment tied to Sora never materialised, according to a Reuters report.

In September 2026, DreamWorks co‑founder Jeffrey Katzenberg teamed with former OpenAI Sora research lead Bill Peebles and ex‑Dropbox CFO Sujay Jaswa to launch an AI video production startup aimed at filmmakers. The Information reported that the new venture is in talks with OpenAI about licensing or improving the Sora model, with OpenAI potentially taking an equity stake, though it is unclear whether model weights will be shared.

As of October 20, 2026, no formal contract has been announced, and details such as the model’s availability, pricing, or whether it will be offered to general users remain uncertain. The reports suggest a possible shift from a consumer‑focused video app to a specialised professional tool, but the revival is not yet confirmed.

## Key points

- OpenAI discontinued Sora in April 2026, citing massive compute costs and a strategic shift.
- Jeffrey Katzenberg, Bill Peebles, and Sujay Jaswa founded a new AI video startup in September 2026.
- Reports on Oct 12 say the startup is negotiating with OpenAI to use and customize Sora, with possible equity exchange.

## Why it matters

If revived, Sora could give filmmakers AI‑generated video at scale, opening a new revenue stream for OpenAI and reshaping video production workflows.

## Sources

1. [Will Sora Return? New Revival Plan Emerges for the Video Generation AI Discontinued by OpenAI](https://note.com/akikito/n/n9c9e8dac18ba?hl=en) (note.com, 2026-10-20)

## Cite

Digest AI, "OpenAI may revive Sora video model in deal with new AI video startup", 20 October 2026, https://digestai.news/story/openai-may-revive-sora-video-model-in-deal-with-new-ai-video-startup

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