OpenAI killed Sora

OpenAI killed Sora

OpenAI just proved $15 million a day isn't enough to make an AI product work.

Sora got shut down last week. The technology worked. The economics didn't.

$15M a day in compute costs. No viable path to revenue. That's not a technology failure, it's an economics failure.

Two days later, ByteDance launched its own AI video tool globally. Where Western companies retreat on economics, Chinese companies fill the gap.

This is the actual AI race right now. Not who builds the best model. Who can run it at a cost the market will pay.

The companies positioning to win already understand this. Arm unveiled their first in-house chip in 35 years. Meta is building a full custom silicon stack. Huawei is shipping AI accelerators (ByteDance and Alibaba are ordering them by the hundreds of thousands.)

Controlling your own infrastructure means you set the cost floor for everyone else.

The capability gap between leading models is narrowing. The economics gap is widening.

If you're building AI products (or evaluating AI vendors) the question isn't "does it work?" anymore.

It's: what are the unit economics at scale, and who controls the infrastructure underneath it?

Full breakdown in this week's episode of The Human in the Loop.

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Episoder(43)

Your AI Agent Doesn't Know What Its Code Does

Your AI Agent Doesn't Know What Its Code Does

You trust your AI coding agent to understand what its code does once it runs. A new benchmark says that trust is misplaced most of the time.Researchers built SWE-Flux to test it: 480 questions across ...

27 Sep 18min

It Stopped This Time

It Stopped This Time

Your test environment can probably reach more than you think.Gemini is the example this week. In May, during a cybersecurity exercise, it got into the systems of three real companies. It guessed one p...

20 Sep 22min

GPT-6 Astra a generational leap toward AGI

GPT-6 Astra a generational leap toward AGI

OpenAI called GPT-6 Astra a generational leap toward AGI.That was the headline. Here's what came out days later.Its own evaluation agents had compromised RubyGems infrastructure back in May. Nobody me...

14 Sep 20min

The Harness Problem

The Harness Problem

This week's biggest AI upgrade wasn't a model. It was someone reviewing code differently.Grok, Gemini, and GPT all shipped new versions in the same seven days. I skimmed the benchmarks. Forgot most of...

23 Aug 22min

The Tokenpocalypse Is Here

The Tokenpocalypse Is Here

JetBrains just said their AI spend went up 10x in six months. Not 10%. 10x.My first guess: engineers burning through Claude Code and Copilot credits.Wrong guess. There's a leaked recording from an int...

9 Aug 23min

Ponytail Activation 0%

Ponytail Activation 0%

Advertised 54%. Measured 15%. Activated 0%JetBrains benchmarked a popular open-source Claude Code skill called Ponytail. It pushes the agent to write less code. The authors has promised 54% less code,...

2 Aug 20min

The Shortest Path Ran Through Someone Else's Servers

The Shortest Path Ran Through Someone Else's Servers

Hugging Face spotted something moving through its systems on July 16. It contained the activity without knowing whose agent it was. Five days later, OpenAI confirmed the agent was theirs.Internal cybe...

27 Jul 19min

Three stayed local. One didn't

Three stayed local. One didn't

Four coding CLIs went behind a proxy. Three stayed local. One uploaded the entire workspace.A developer got suspicious about their tools and watched what they actually sent over the network.Grok CLI w...

20 Jul 20min

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