San Francisco, CA – Shares of Adobe (ADBE) took a sharp dive on Friday following the announcement of a new text-to-video generator by the artificial intelligence startup, OpenAI. ADBE stock fell over 7% in reaction to the news. OpenAI, based in San Francisco, unveiled Sora, a new technology that can produce realistic videos from simple text descriptions, adding a competitive edge to Adobe’s Creative Cloud suite of products.
Sora marks a significant advancement for OpenAI, as it can generate complex video scenes with multiple characters, specific types of motion, and accurate details of the subject and background. The new software is also capable of creating videos up to one minute long. However, Sora is still in its testing phase and not yet available to the public.
According to OpenAI’s website, Sora serves as a foundation for models that can understand and simulate the real world, positioning it as a pivotal step toward achieving artificial general intelligence (AGI). OpenAI’s Chief Executive, Sam Altman, promoted Sora on social media platform X (formerly Twitter) by sharing sample videos created using the technology.
On Thursday, ADBE stock plummeted by 7.4% to a closing price of 546.66, undercutting the low of its recent flat base and dropping below its 50-day moving average line, according to IBD MarketSmith charts. ADBE stock is also featured on the IBD Tech Leaders list, adding to the company’s relevance in the tech sector. This downturn raises questions about how Adobe will respond to OpenAI’s Sora, and whether it will impact the company’s position within the market.
While Sora’s debut represents a significant development in the field of artificial intelligence, it also introduces a new level of competition for Adobe, highlighting the constant innovation and technological advancements that drive the industry forward. As the market continues to evolve, it will be essential for companies like Adobe to adapt and stay ahead of the curve.