Jeffrey Katzenberg's new AI startup is looking to use OpenAI's Sora to build video solutions, according to people familiar with the matter. The move could give the fledgling venture a ready-made engine for generating video content, while providing OpenAI with a high-profile partner in the media industry.
A shot at revitalizing Sora
Sora, OpenAI's text-to-video model, has been one of the company's most talked-about projects since it was first shown late last year. But it hasn't yet been widely released, and questions remain about how OpenAI plans to commercialize it. A partnership with Katzenberg's team could change that, giving Sora a real-world application and a test case for how the technology performs in professional settings.
The startup, which Katzenberg has been building since leaving his role as head of DreamWorks Animation's parent company, is still in its early stages. Details about its funding, size, or exact product lineup haven't been disclosed. But the fact that it's considering Sora suggests the company is aiming to use cutting-edge generative AI rather than more traditional animation or editing tools.
What Katzenberg's startup brings
Katzenberg's track record in Hollywood and animation is well known. He co-founded DreamWorks SKG with Steven Spielberg and David Geffen in 1994, and later led DreamWorks Animation through a series of hit franchises. More recently, he was chairman of Quibi, the short-form streaming service that shut down months after launching in 2020.
That mixed record might make some investors cautious. But his deep connections in entertainment could help an AI video startup land clients and talent that a typical tech company couldn't. If the venture can combine those relationships with Sora's capabilities, it could carve out a niche in advertising, film pre-production, or social media content.
Why OpenAI would play along
OpenAI has been under pressure to show that its research translates into revenue. The company has struck deals with publishers and enterprises, but video generation is still an emerging market. Partnering with a media veteran like Katzenberg could help OpenAI demonstrate that Sora is more than a demo.
There's also the valuation angle. OpenAI's most recent funding round reportedly valued it at over $80 billion. To justify that number, it needs to prove it can dominate multiple categories, not just text. Video is a massive market, and a successful Sora rollout could open up new revenue streams from studios, advertisers, and creators.
Nothing is finalized yet. The talks are early, and it's unclear whether they'll result in a formal deal. OpenAI hasn't commented on the potential collaboration, and Katzenberg's startup hasn't made any public statements about its plans.
If the partnership does happen, it would mark another step in the growing intersection of AI and entertainment. Several studios and tech companies are already experimenting with generative video, though few have deployed it at scale. The outcome of this deal could signal whether Sora becomes a standard tool in media production or remains a novelty.
For now, the ball is in OpenAI's court. The company is expected to announce more details about Sora's availability in the coming months. Whether Katzenberg's startup will be part of that rollout is still an open question.
