OpenAI embraces the 'platform paradox' by selling API access to startups that compete directly with its own apps like ChatGPT. The strategy is to foster a broad ecosystem, believing that enabling competitors is necessary to avoid losing the platform race entirely.

OpenAI intentionally releases powerful technologies like Sora in stages, viewing it as the "GPT-3.5 moment for video." This approach avoids "dropping bombshells" and allows society to gradually understand, adapt to, and establish norms for the technology's long-term impact.

The obvious social play for OpenAI is to embed collaborative features within ChatGPT, leveraging its utility. Instead, the company launched Sora, a separate entertainment app. This focus on niche content creation over core product utility is a questionable strategy for building a lasting social network.

OpenAI frames the current Sora model as analogous to GPT-3.5: a promising but flawed early version. This signals they know how to build the 'GPT-4 equivalent' for video and expect the pace of improvement to be even faster than it was for large language models.

Proficiency with AI video generators is a strategic business advantage, not just a content skill. Like early mastery of YouTube or Instagram, it creates a defensible distribution channel by allowing individuals and startups to own audience attention, which is an unfair advantage in the market.

While OpenAI has strong brand recognition with ChatGPT, it's strategically vulnerable. Giants like Google and Microsoft can embed superior or equivalent AI into existing products with massive user bases and established monetization channels. OpenAI lacks these, making its long-term dominance questionable as technical differentiation erodes.

By releasing Sora as an API for developers and businesses rather than a standalone consumer app, OpenAI reveals its core strategy. The goal is to empower enterprise use cases like ad generation, not to build a new video destination to compete with platforms like YouTube or TikTok.

Startups are becoming wary of building on OpenAI's platform due to the significant risk of OpenAI launching competing applications (e.g., Sora for video), rendering their products obsolete. This "platform risk" is pushing developers toward neutral providers like Anthropic or open-source models to protect their businesses.

OpenAI launched Sora 2 knowing it would generate copyrighted content to achieve viral growth and app store dominance, planning to implement controls only after securing market position and forcing rights holders to negotiate.