OpenAI Launches Sora 2 and Hits $500 Billion Valuation
A few days ago, artificial intelligence (AI) industry leader OpenAI unveiled its new and advanced video generation model, Sora 2.
Sora Soars
It is no surprise that the tool has become a big hit with users, as social media platforms quickly filled up with AI-generated videos. Many of these videos compare Sora 2's outputs against Google's Veo 3, something we also tried ourselves.
There is even a trend where users create deepfake videos of the company's CEO, Sam Altman, in a variety of humorous and unlikely situations.
Much of this activity took place on OpenAI's new and first-ever social media app, the Sora app, which is available as a standalone iOS app. It allows users to create, remix, and share short AI-generated video clips in a vertical, TikTok-style feed.
The app also lets verified users feature themselves in AI-generated content. Currently, it is available only through an invite-only system for users in the U.S. and Canada.
Even with its limited access, the app reached 56,000 downloads on its first day, 164,000 by day 2, and became the No. 3 top overall app on the U.S. App Store, according to Appfigures.
Its first-day performance made it one of the best-performing AI products at launch, outperforming Anthropic's Claude and Microsoft's Copilot, and matching xAI's Grok. However, it was slightly behind Google’s Gemini (iOS) and OpenAI’s own ChatGPT, both of which had around 80,000 downloads on day one.
Keep in mind, Sora 2 downloads were invite-only.
Not everyone at OpenAI was happy with this success, as many researchers questioned how the app fits with the company's original mission to develop AI that benefits humanity, especially considering OpenAI's initial non-profit stance.
AI researcher John Hallman shared his thoughts on X, saying, "AI-based feeds are scary. I will not deny that I felt some concern when I first learned we were releasing Sora 2."
Still, Hallman praised the team for their work. "That said, I think the team did the absolute best job they could in designing a positive experience." He also gave his critique, saying, "Compared to other platforms, I find myself scrolling way less, and creating way more," and ended with a thoughtful note, "AI is still early, there is a lot to learn, and Sora 2 is just one more step along this journey. We are going to do our best to make sure AI helps and does not hurt humanity."
Other OpenAI researchers also shared similar feelings of worry mixed with excitement, including Boaz Barak, Will DePue, Rohan Pandey, and Miles Brundage.
Share Sale
OpenAI recently hit a valuation of $500 billion after selling around $6.6 billion worth of shares, according to a source familiar with the matter, who chose to remain anonymous because they are not allowed to speak to the media.
The deal allowed OpenAI employees to sell shares to a group of investors, including Thrive Capital, SoftBank, Dragoneer Investment Group, MGX, and T. Rowe Price.
The company authorized sales of over $10 billion worth of stock on the secondary market. This also raised OpenAI's valuation from $300 billion to $500 billion.
This makes OpenAI the world's most-valued privately-owned startup, surpassing Elon Musk's SpaceX, which was valued at $400 billion in July 2025.
Stargate
OpenAI announced a new strategic partnership with Samsung Electronics and SK Hynix to strengthen its Stargate project.
The plan is to expand AI critical infrastructure globally, with a focus on South Korea. Samsung and SK Hynix will supply advanced memory chips needed for next-generation AI and expanding data center capacity in Korea, targeting 900,000 DRAM chips per month. They also plan to deploy ChatGPT Enterprise and API capabilities in their operations.
The initiative includes building two data centers with an initial capacity of 20 megawatts.
OpenAI also signed agreements to explore developing next-generation AI data centers in Korea. This includes an MoU with the Korean Ministry of Science and ICT (MSIT) to build AI data centers outside the Seoul Metropolitan Area, aiming to boost economic growth and create jobs.
Similar agreements were made with SK Telecom, Samsung C&T, Samsung Heavy Industries, and Samsung SDS.
"Korea has all the ingredients to be a global leader in AI, with incredible tech talent, world-class infrastructure, strong government support, and a thriving AI ecosystem," said OpenAI CEO Sam Altman. "We are excited to work with Samsung Electronics, SK Hynix, and the Ministry of Science and ICT through our global Stargate initiative to support Korea's AI ambitions."
Do you think these moves will help OpenAI lead in the AI sector and secure a strong position in the social media space with the Sora app?
