OpenAI said Monday it’s releasing its buzzy AI video-generation tool, Sora, later in the day.
The AI video-generation model works similarly to OpenAI’s image-generation AI tool, DALL-E: A user types out a desired scene, and Sora will return a high-definition video clip. Sora can also generate video clips inspired by still images and extend existing videos or fill in missing frames. The Microsoft-backed artificial intelligence startup, which burst into the mainstream last year thanks to the viral popularity of ChatGPT, introduced Sora in February.
It’ll debut to U.S. users as well as to “most countries internationally” later today, according to OpenAI’s YouTube livestream, and the company has “no timeline” yet for launching the tool in Europe and the U.K., as well as some other countries.
OpenAI said users don’t need to pay extra for the tool, which will be included in existing ChatGPT accounts such as Plus and Pro. Employees on the livestream and OpenAI CEO Sam Altman demonstrated features like “Blend” (i.e., joining two scenes together at the user’s direction), as well as the option to make an AI-generated video endlessly repeat.
Until now, Sora has mainly been available to a small group of safety testers, or “red-teamers,” who test the model for vulnerabilities in areas such as misinformation and bias.
Reddit users asked OpenAI executives in October about Sora’s release date, questioning whether it was being delayed “due to the amount of compute/time required for inference or due to safety.” In response, OpenAI’s product chief Kevin Weil wrote, “Need to perfect the model, need to get safety/impersonation/other things right, and need to scale compute!”
“We obviously have a big target on our back as OpenAI,” Rohan Sahai, OpenAI’s Sora product lead, said on the livestream, adding that the company needs to prevent illegal use of the technology. “But we also want to balance that with creative expression.”
OpenAI closed its latest funding round in October at a valuation of $157 billion, including the $6.6 billion the company raised from an extensive roster of investment firms and Big Tech companies. It also received a $4 billion revolving line of credit, bringing its total liquidity to more than $10 billion.
It’s all part of a serious growth plan for OpenAI, as the Microsoft-backed artificial intelligence startup battles Amazon-backed Anthropic, Elon Musk’s xAI, Google, Meta, Microsoft and Amazon for the biggest slice of the generative AI market, which is predicted to top $1 trillion in revenue within a decade.
Earlier this month, OpenAI hired its first chief marketing officer, indicating plans to spend more on marketing to grow its user base. And in October, OpenAI debuted a search feature within ChatGPT that positions it to better compete with search engines like Google, Microsoft‘s Bing and Perplexity and may attract more users who otherwise visited those sites to search the web.
With Sora, the ChatGPT maker is looking to compete with video-generation AI tools from companies such as Meta and Google, which announced Lumiere in January. Similar AI tools are available from other startups, such as Stability AI’s Stable Video Diffusion. Amazon has also released Create with Alexa, a model that specializes in generating prompt-based short-form animated children’s content.
Video could be the next frontier for generative AI now that chatbots and image generators have made their way into the consumer and business world. While the creative opportunities will excite some AI enthusiasts, the new technologies present serious misinformation concerns as major political elections occur across the globe. The number of AI-generated deepfakes created has increased 900% year over year, according to data from Clarity, a machine learning firm.
OpenAI has made multimodality — the combining of text, image and video generation — a prominent goal in its effort to offer a broader suite of AI models.
News of Sora’s release follows protestors’ decision to leak what appeared to be a copy of Sora over concerns about the ChatGPT maker’s treatment of artists.
Some members of OpenAI’s early access program for Sora, which it said included about 300 artists, published an open letter in late November critiquing OpenAI for not being sufficiently open or supporting the arts beyond marketing.
“Dear corporate AI overlords,” the protestors’ open letter stated, “We received access to Sora with the promise to be early testers, red teamers and creative partners. However, we believe instead we are being lured into ‘art washing’ to tell the world that Sora is a useful tool for artists.”
The letter added that hundreds of artists provided unpaid labor for OpenAI through bug testing and feedback on Sora, and that “while hundreds contribute for free, a select few will be chosen through a competition to have their Sora-created films screened — offering minimal compensation which pales in comparison to the substantial PR and marketing value OpenAI receives.”
“We are not against the use of AI technology as a tool for the arts (if we were, we probably wouldn’t have been invited to this program),” the open letter stated. “What we don’t agree with is how this artist program has been rolled out and how the tool is shaping up ahead of a possible public release. We are sharing this to the world in the hopes that OpenAI becomes more open, more artist friendly and supports the arts beyond PR stunts.”
In late November, an OpenAI spokesperson responded to the protestors’ actions in a statement to CNBC.
“Hundreds of artists in our alpha have shaped Sora’s development, helping prioritize new features and safeguards,” the OpenAI spokesperson said at the time. “Participation is voluntary, with no obligation to provide feedback or use the tool. We’ve been excited to offer these artists free access and will continue supporting them through grants, events, and other programs.”
Chegg seen at the New York Stock Exchange on Feb. 13, 2025.
Danielle DeVries | CNBC
Chegg on Monday filed suit in federal district court against Google, claiming that artificial intelligence summaries of search results have hurt the online education company’s traffic and revenue.
The legal move come nearly two years after former CEO Dan Rosensweig said students engaging with OpenAI’s ChatGPT assistant were cutting into Chegg’s new customer growth.
Chegg is worth less than $200 million, and in after-hours trading Monday, the stock was trading just above $1 per share. Chegg has engaged Goldman Sachs and will look at strategic options, including getting acquired and going private, President and CEO Nathan Schultz told analysts on a Monday earnings call.
Chegg reported a $6.1 million net loss on $143.5 million in fourth-quarter revenue, a 24% decline year over year, according to a statement. Analysts polled by LSEG had expected $142.1 million in revenue. Management called for first-quarter revenue between $114 million and $116 million, but analysts had been targeting $138.1 million. The stock was down 23% in extended trading.
Google forces companies like Chegg to “supply our proprietary content in order to be included in Google’s search function,” said Schultz, adding that the search company uses its monopoly power, “reaping the financial benefits of Chegg’s content without having to spend a dime.”
Despite the suit, Chegg has its own AI strategy. It has drawn on Meta’s open-source Llama, as well as models from privately held Anthropic and Mistral, Schultz said. Chegg has also partnered with OpenAI, which the education company views as a competitor, alongside Google. The company reported that 3.6 million students had subscriptions in the fourth quarter, down 21%. Subscriptions include access to AI-powered learning assistance. Chegg also rents and sells textbooks.
AI Overviews, as Google’s artificial intelligence summaries are called, are available in the company’s search engine in over 100 countries, with more than 1 billion users, the company said in October. They show up above links to other pages in search results.
A Google spokesperson told CNBC that the company will defend itself against Chegg’s suit.
“Every day, Google sends billions of clicks to sites across the web, and AI Overviews send traffic to a greater diversity of sites,” the Google spokesperson said.
Chegg claimed that Google drew on Chegg’s collection of 135 million questions and answers on a variety of subjects in its model training data sets.
After training its models, Google can generate content that competes with information that publishers have on offer in search results, Chegg argued in its complaint. The online learning company included a screenshot of a Google AI Overview that borrows details from Chegg’s website but does not attribute the information. However, the relevant Chegg page does show up lower down in search results.
Chegg cited a federal judge’s ruling last August that Googleholds a monopoly in the search market. The decision came after the Department of Justice in 2020 filed its landmark case, alleging that Google controlled the general search market by creating strong barriers to entry and a feedback loop that sustained its dominance.
Hims & Hers Health shares plunged 18% in extended trading on Monday after investors looked past better-than-expected revenue and earnings and focused instead on the disappointing gross margin.
Here’s how the company did, compared to analysts’ consensus estimates from LSEG:
Earnings per share: 11 cents vs. 10 cents expected
Revenue: $481 million vs. $470 millionexpected
Revenue at the telehealth company increased 95% in the fourth quarter from $246.6 million during the same period last year, according to a release.
However, the company’s gross margin, or the profit left after accounting for the cost of goods sold, was 77%, while analysts polled by StreetAccount were expecting 78.4%.
It is the second big stock drop for Hims & Hers in a matter of days. The shares tumbled 26% on Friday after the U.S. Food and Drug Administration announced that the shortage of semaglutide injection products has been resolved.
In May, Hims & Hers started prescribing compounded semaglutide, the active ingredient in Novo Nordisk‘s blockbuster GLP-1 medications Ozempic and Wegovy. The company was a breakout star within the digital health sector in 2024, in part because of the success of its popular new weight loss offering.
The company said its GLP-1 offering generated more than $225 million in revenue in 2024. The stock climbed about 200% for the year.
Compounded drugs are custom-made alternatives to brand-name drugs designed to meet a specific patient’s needs, and compounders are allowed to produce them when brand-name treatments are in shortage. The FDA said Friday that it will start taking action against compounders for violations in the next 60 to 90 days.
Hims & Hers said on the earnings call that as a result, compounded semaglutide will likely not be offered on the platform after the first quarter.
“We will have to start notifying customers in the coming month or two that they will need to start looking for alternative options on the commercial dosing,” Hims & Hers CEO Andrew Dudum said on the call. “I would suspect, just being very direct, that a lot of those patients will try to go into the open market and try to secure a branded option in some form factor.”
Some patients might still be able to access compounded semaglutide if it is clinically necessary, the company added.
The company’s weight loss offerings will primarily be composed of its oral medications and the generic medication liraglutide, which it plans to introduce on its platform this year. Excluding contributions from compounded semaglutide, Hims & Hers said it expects it weight loss offering will generate at least $725 million in revenue in 2025.
Hims & Hers also offers treatments for skin care, mental health, sexual health and hair care.
Revenue for non-GLP-1 products increased 43% to $1.2 billion for the full year, “meeting our previous 2025 revenue target a year early,” Chief Financial Officer Yemi Okupe said in a release.
“The success we are experiencing is a direct reflection of our improving ability to democratize access to high quality, personalized care across each of our specialties,” Okupe said.
Net income climbed to $26.01 million, or 11 cents per share, from $1.25 million, or 1 cent per share, a year prior. The company reported adjusted earnings of $54.1 million, meeting analysts’ estimates, according to StreetAccount.
For the first quarter, Hims & Hers expects to report revenue of $520 million to $540 million, while analysts were expecting $497 million. Adjusted earnings will be between $55 million and $65 million for the period, the company said.
Hims & Hers will host its quarterly call with investors at 5:00 p.m. ET.
— CNBC’s Brandon Gomez contributed to this report.
As the clean energy economy expands, finding the minerals and metals that power it becomes increasingly critical. The answer might lie with artificial intelligence.
Electric cars, solar panels and hydrogen fuel cells all have one thing in common: the need for precious metals.
Historically, that’s required going through the arduous process of finding the metals and then getting them out of the ground. But new technologies from a slew of companies might be changing the game.
Kobold Metals, VerAI and a startup called Earth AI are in a race to get the metals to market as soon as possible. Earth AI combines AI-powered mineral discovery software with proprietary drilling technology. Its data goes back 50 years.
“We train our AI to learn from failures and successes of decades of hundreds of geologists that explored in the past to make much better predictions for where to look for metals in the future,” said Roman Teslyuk, CEO of Earth AI.
When the system finds what it thinks are metal deposits, Earth AI can drill down to verify it in just a tennis ball-sized hole. Teslyuk said that using this mining process takes half the cost and a fraction of the amount of time that was previously required. Individual annual mine revenues can range from $50 million to $3 billion, according to Mining Data Online.
“We drill down to 2,000 feet and grab a sample of rock that has never seen light, and the metals in that rock, they can build hundreds of millions of electric cars,” Teslyuk said. “They can turn our grid renewable. This rock can get us off hydrocarbons.”
Earth AI doesn’t explore around existing mines, but finds new areas and then sells that information to mining companies.
“The market for these minerals is massive,” said Jamie Lee, managing partner at Tamarack Global, an investor in Earth AI. “The way that they have approached this really caught our attention because there’s a there is a significant moat in their business model and the way that they’ve trained their large language model.”
Other investors include Y Combinator, Cantos Ventures, Scrum Ventures, Alpaca, Sparkwave Capital and Overmatch. The company has raised a total of $38 million.
Earth AI explores on its own, as well as with partners to find deposits faster. The company recently discovered one of the largest verified deposits of palladium in Australia using AI as part of a joint venture with Legacy Minerals.
CNBC Producer Lisa Rizzolo contributed to this piece.