OpenAI is currently negotiating with an AI video startup backed by former Hollywood executive Jeffrey Katzenberg to provide deep access to its defunct Sora text-to-video model, abandoned in March 2026, in exchange for an equity stake. The startup, co-founded by Katzenberg, former Sora research lead Bill Peebles, and former Dropbox CFO Sujay Jaswa, focuses on building specialized tools for professional filmmakers. OpenAI discontinued Sora in March 2026 due to high operating costs and lack of consumer traction. Negotiations began on October 12, 2026, and no timeline or specific terms have been confirmed. This potential deal would allow OpenAI to salvage value from sunk costs after a billion-dollar partnership with Disney collapsed following Sora’s shutdown.
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