Welcome to See King Alpha's Wall Street breakfast, where we cover the top news for investors every morning.

Good morning. Today is Friday, February 16th. I'm Julie Morgan.

Open AI has a new AI model.

Applied materials beat expectations and Nike is cutting jobs.

Open AI is introducing us to SORA.

Open AI said it is launching a video generation model called SORA, which can create realistic

and imaginative scenes from text instructions.

The company said SORRA can generate videos up to 60 seconds long while maintaining visual

quality and adherence to the user's prompt.

The blog post also contained several videos that demonstrated SORA's abilities, but noted that

the current model has certain weaknesses.

The company says

SORA may struggle with accurately simulating the physics of a

complex scene and may not understand specific instances of cause and effect.

Open AI, which is backed by Microsoft,

also said the model may confuse spatial details of a prompt.

The company will have to contend with Google's Loomir,

which offers tools to turn text into videos and also

allows still images to be turned into videos.

SORA is now available only to Red Teamers to assess critical areas for harms.

It's also available to a number of visual artists, designers, and filmmakers to gain feedback

on how to advance the model for creative professionals.

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