OpenAI is in talks to hand Sora to Bill Peebles' film startup OpenAI

OpenAI is in talks to give a filmmaking startup deep access to Sora, its shut-down video model, in exchange for an equity stake, The Information reported on October 12, 2026. The startup is co-founded by former Sora research lead Bill Peebles and Hollywood producer Jeffrey Katzenberg.

Nothing is signed. The terms, the timeline and the size of OpenAI's stake have not been disclosed.

What is reported

• The startup. Unnamed. Co-founded by Bill Peebles, Jeffrey Katzenberg and former Dropbox CFO Sujay Jaswa.
• The plan. Customize Sora into professional tools for filmmakers, not a consumer app.
• OpenAI's side. An equity stake in the startup instead of cash.
• Open questions. Reports differ on whether the model weights would be handed over.

Why Sora was shut down

The Wall Street Journal reported that the Sora app cost OpenAI about $1 million a day while its user numbers fell. Reports also say OpenAI moved the compute to coding and enterprise work. A partnership with Disney, which included a $1 billion investment in OpenAI, fell apart after the shutdown.

Sources

• The Information on X: the report on the Sora talks
• OpenAI Help Center: What to know about the Sora discontinuation
• Crypto Briefing: OpenAI discusses turning abandoned Sora investment into startup stake
• The Decoder: Sora burned a million dollars a day (citing the WSJ)