Meta slides as OpenAI launches TikTok-like app

Meta slides as OpenAI launches TikTok-like app

Meta Inc. (META) faces potential market share loss as OpenAI launches a TikTok-like app, Sora 2, leveraging its advanced video generation AI model. The app, which mimics the vertical video feed and swipe-to-scroll navigation of TikTok, allows users to create and interact with AI-generated content. The launch of Sora 2 comes at a time when Meta is introducing its own AI-generated video feed, Vibes, and Google is integrating its latest video generation model, Veo 3, into YouTube. TikTok, meanwhile, has recently updated its rules to ban misleading AI-generated content.

The Sora 2 app, which was internally launched last week, has received positive feedback from OpenAI employees. It features a For You-style page powered by a recommendation algorithm and an identity verification feature that allows users to confirm their likeness and use it in videos. The app's launch follows a series of lawsuits and criticism over copyright infringements and child safety issues, which OpenAI has been addressing with new parental controls and an age-prediction tool.

The Sora 2 app is part of OpenAI's strategy to let users interact with AI-generated video in a way that fundamentally changes their experience of the technology, similar to how ChatGPT helped users realize the potential of AI-generated text. The app's launch also capitalizes on the ongoing negotiations surrounding the sale of TikTok's US operations, which have given OpenAI a unique opportunity to introduce a short-form video app with minimal ties to China.

As Meta and other tech giants continue to invest in AI-generated content, OpenAI's Sora 2 app presents a significant challenge. The app's success could impact Meta's market share and influence the broader AI video market. However, the app's long-term success remains uncertain, as it faces competition from established platforms and potential regulatory challenges.