Is This GPT-6? OpenAI Bets Everything on New Model “Spud”
OpenAI has made a significant internal strategic shift: the video AI tool Sora is being discontinued, while the company has focused heavily on completing a new language model with the codename “Spud.” CEO Sam Altman expects to be able to release the model within a few weeks. Whether it will be GPT-6 or more likely GPT-5.5 remains unclear for now.
What Is “Spud”?
According to a report by The Information, OpenAI has completed the pre-training of its new model with the internal codename “Spud.” Sam Altman is said to have told employees that the model could “really accelerate the economy.” No specific details about the model’s capabilities have been disclosed so far.
“Spud” is set to be a “very strong model” according to Altman, and could be released within a few weeks.
The new model fits into OpenAI’s overarching strategy of expanding productivity tools for businesses. Plans include a so-called “super app” that combines ChatGPT, the coding tool Codex, and a proprietary browser in a single desktop application.
Why Was Sora Discontinued?
The discontinuation of Sora is no coincidence, but the result of a deliberate resource decision. Video generation is extremely compute-intensive, and every GPU chip used for Sora clips was unavailable for other projects. OpenAI is currently clearly prioritizing the coding and enterprise products space, particularly to catch up with competitor Anthropic.
The following factors contributed to the discontinuation of Sora:
- Enormous GPU demand for video generation combined with limited resources
- Failed or unconcluded content deals, including a planned partnership with Disney
- Strategic realignment toward coding tools and enterprise products
- Difficulties integrating Sora into the new super app strategy
- Growing pressure from competitors such as Anthropic and Google Gemini
The Sora team will in future work on so-called “world simulation” research, which is intended to be used for robotics applications in the long term. The app itself, its API, and the planned ChatGPT integration have been completely discontinued.
Internal Restructuring at OpenAI
Alongside the discontinuation of Sora, Sam Altman has announced an internal reorganization of the company. The safety division will in future be assigned to the research division under Mark Chen, while security matters in the technical sense will fall under Greg Brockman. Altman himself intends to focus more on fundraising and the construction of data centers.
Fidji Simo, who joined OpenAI just a few weeks ago, is taking on the role of CEO for the “AGI Deployment” division, which essentially encompasses all product areas. The restructuring is intended to stabilize OpenAI on its path to profitability, while the company faces considerable competitive pressure.
“Code Red” since end of 2025
OpenAI has been in an internal “Code Red” state since at least December 2025, after competitors such as Anthropic with Claude and Google with Gemini caught up. The discontinuation of Sora and the announcement of “Spud” are an expression of this realignment: away from compute-intensive creative tools, toward productive, enterprise-oriented AI applications. Whether the new model can meet the high expectations will become clear in the coming weeks.
