OpenAI's Sora and Pika.art Will Become the Evolved AI Netflix
"Instantly generated fake entertainment" – Don't be surprised.
The media and entertainment industry will feel the strong effect of AI. Artificial intelligence could create and generate content in these areas. Companies like OpenAI have a product called Sora that creates videos from text. If you look at some of their videos, they're quite fascinating and realistic.
There are some faults if you look deep into the videos. Faces are blurred because it takes a lot of computing power to generate something of good quality with very small details. But don't focus on the quality right here. Focus on what you're looking at in front of you - a video created from scratch using lines of code and text.
Creating Video from Text
Imagine the new era of entertainment that comes with this capability. Say I'm in the mood to watch something on Netflix but don't know what I want to watch. I want to watch something funny like people joking and hanging out with friend giraffes. The fact that you can create content by just talking to a machine or writing a prompt makes the media and entertainment industry totally different.
You won't need a director, actor, or movie set. You'll be able to watch something that is instantly generated, which puts the industry at a whole new level. That's why I'm betting on companies like OpenAI's Sora, or another company called Pika, though it's still in early stages. Pika has interesting features, but it's not quite there yet. They’ve raised around $135m to get the move on. So they should be growing.
These platforms are not creating Martin Scorsese-level movies because it takes a lot of computing power, and still needs a director. But when directors think of making a movie, will they consider the budget and years involved in creating a film, or will they simply put their vision in text and see early-stage viewings using artificial intelligence tools?
The AI Future of Content Creation
The fascinating part is that they could use these tools to imagine actors in the movie. If Martin Scorsese uses an AI tool and tells the machine to put DiCaprio in a story similar to Titanic but in space, it could generate an entire movie.
This builds an entirely different media industry. We'll likely see it first in short-form videos, like on TikTok. I've worked with companies already developing this technology. While the idea of an Instagram-like platform for AI videos might sound repulsive - why would you look at content that isn't real? right? - testing these platforms was actually very interesting.
Most content on Instagram or TikTok is predictable: someone dancing, cooking, or cute animals. But with AI-generated content, you have no idea what you'll see next. This unpredictability creates curiosity, which drives retention on social media platforms.
Eventually, this will lead to long-form content with actual stories. When AI can deliver perfect stories, that's when the entertainment industry will face significant changes. Just as Pixar reinvented animation with movies like Toy Story, AI will transform this industry.
We are in an AI bubble, whether you believe it or not. Unlike the Internet bubble, which had clear limitations, we don't know AI's full capabilities or how big this bubble could become.
But we do know that current companies will become the Apple, Amazon, and Tesla of AI. Figure AI is establishing itself in robotics, Perplexity in search engines, and Pika Labs or OpenAI's Sora in media and entertainment.
You can view this positively or negatively, be pessimistic or optimistic, but the truth is: that it's time to start learning how to deal with artificial intelligence.
I’ve talked about three case studies of how AI will reform industries: robots, entertainment, and search. I’ve recorded it in a podcast. Here it is on Spotify, Apple Podcasts, and YouTube.