OpenAI in Talks to Transfer Sora to Stealth Startup for Professional Filmmaking Tools

OpenAI is in talks with a stealth startup focused on AI video technology for filmmaking to transfer its shuttered video generation model Sora, according to The Information on Oct 12. The startup plans to revamp Sora into a professional tool for film and video production and bring it back to market.

The startup was founded several months ago by Hollywood producer Jeffrey Katzenberg, former Sora research lead Bill Peebles, and former Dropbox CFO Sujay Jaswa. Its name has not been made public. Based on the reported details, the company intends to take over and rebuild the Sora platform, then develop and sell software or services aimed at film production teams.

The two sides have not finalized the terms of a deal, and it remains unclear whether the startup will gain access to Sora's model weights. Earlier in 2026, OpenAI discontinued development of Sora and its TikTok-like video app as part of a broader pullback from high-compute, non-core projects, redirecting resources toward enterprise AI and programming tools. Sora's consumer app and web platform have since been shut down, and OpenAI also ended a roughly $1 billion collaboration plan with Disney.