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OpenAI in talks to license its shut-down video model Sora to a startup co-founded by Katzenberg, in exchange for equity (report)

Announced October 12, 2026

Verified (fact)

AI Times reported this, citing The Information. OpenAI, which shut down development and service of Sora due to operating costs and compute burden, is negotiating to license the model to an outside startup. The counterpart is a stealth startup co-founded by Jeffrey Katzenberg, former Sora research lead Bill Peebles, and former Dropbox CFO Sujay Jaswa. OpenAI would reportedly grant access to the technology in exchange for equity rather than running the model itself.

Why it matters (interpretation)

This could be a case of a frontier company shifting a costly generative video business from direct operation to licensing in exchange for equity. It sheds light on the cost structure of video generation models and the path to commercialization in Hollywood.

Confidence medium · official source pending

Sources

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