Good morning. This is Patrick Coffee filling in for Nat Ives. Today, OpenAI pivots away from video and its $1 billion deal with Disney.

OpenAI wants to do many things, but helping people create original videos is no longer one of them. 

The company will wind down its generative video app Sora, along with other video capabilities in its primary app, ChatGPT, WSJ's Berber Jin reports.

This move is part of a shift toward so-called productivity tools that can be used by both enterprises and individual users, and it follows last week's announcement that OpenAI would combine its ChatGPT desktop app, coding tool Codex and browser into one “superapp.”

When Sora launched in September, it generated fanfare and speculation while using an incredible amount of computing power. 

There was even talk of brands licensing their mascots for user-generated videos, and IP played a big role in Disney's $1 billion December investment in OpenAI.

But preparing for an IPO later this year while battling with Anthropic for enterprise clients took precedence. 

Now Sora will fade into the AI ether, and the Disney deal is off.

Shopify CEO Tobi Lutke got a lot of attention last year, much of it negative, for a memo declaring that the shopping platform would only make new hires if AI couldn’t already do their jobs.

But the unintentional leak ultimately inspired employees to get a little more proactive in adopting AI tools, according to Chief Financial Officer Jeff Hoffmeister, who appeared at this week’s WSJ CFO Council Summit in conversation with Alan Murray, CEO of the WSJ Leadership Institute.

The two also discussed how agentic commerce might infect our daily lives.

As a father of two young kids who longs for convenience amid the chaos, I might be the target audience for this kind of speculative fiction. But there is absolutely no way I would ever trust an agent to handle our money.

Yeah OK, but how has AI influenced Shopify's business? The company’s headcount stayed relatively flat over the past 3 years with revenue growth at around 30%, Hoffmeister said. 

A New Mexico jury became the first to hold Meta liable for misleading consumers about the safety of its platforms and failing to protect young people from online dangers, including sexually explicit content and human trafficking, Erin Mulvaney and Meghan Bobrowsky report.

The jury ordered the maximum civil penalty of $375 million, or 1/160 of Meta's most recent quarterly revenue.

This loss may be a harbinger of what's to come. Another very public trial is currently underway in Los Angeles regarding the alleged harms that Meta's model inflicted on a young woman, with some 2,000 similar lawsuits pending in federal court.

“Today the jury joined families, educators, and child safety experts in saying enough is enough," said New Mexico Attorney General Raúl Torrez, who filed the suit in 2023 that led to this trial.

Meta plans to appeal.

Back to our regularly scheduled AI programming: Meta named Andrew Bosworth, its chief technology officer, to oversee a program that encourages employees to use AI. [WSJ]

Oh, and also: Meta hopes to reach a valuation of $9 trillion by 2031 through an aggressive stock option program including executives like Bosworth. [WSJ]

18.4 million people tuned in to watch a livestream of BTS's comeback show on Netflix, according to Netflix. [Bloomberg]

Investors think Labubu maker Pop Mart is a fad and punished the company accordingly despite a huge sales boom. [WSJ] 

After the party it's... the members-only hotel rooftop pool lounge? [WSJ] 

Omnicom trails Publicis when it comes to launching audits of The Trade Desk. [AdAge]

Apple plans to release a standalone Siri app and an "Ask Siri" button as part of its AI repositioning. [Bloomberg]

Amazon Web Services is developing more AI agents for departments that just got hit with hundreds of layoffs. [The Information] 

Calling all men: Beyond Yoga has a product line for you. [Modern Retail]

KFC released a puffer jacket filled with real pickles, and the model really could look more excited about it. [Creative Boom]