Investing.com — OpenAI’s reported plans to launch a short-form video app powered by its Sora 2 model could reshape the digital landscape, but Morgan Stanley sees the risks distributed unevenly across the sector.
The analysts said the app, featuring “a vertical video feed with swipe-to-scroll navigation similar to TikTok’s interface,” will allow users to generate clips of up to 10 seconds using AI, with identity verification as a key feature.
Morgan Stanley noted, “Our companies are in the business of competing for time and modifying consumer behavior. ChatGPT has modified and captured ‘search’ behavior with agentic offerings…and, if confirmed, we see this new Sora app as a direct competitor for consumer engagement/time/data against META, GOOGL/YouTube, TikTok, RDDT, SNAP and the other digital platforms.”
However, the bank warned that challenging the incumbents will not be easy.
“Changing the behavior of hundreds of millions of people (in META/GOOGL’s cases, billions) is difficult,” the analysts wrote. “For OpenAI to scale its social app, we think it will be important to provide a substantially differentiated (and better) user experience than leaders like META/GOOGL/YouTube.”
The bigger disruption risk, Morgan Stanley argued, may fall on smaller players. “Smaller platforms with less sophisticated next generation ML/GenAI offerings could face engagement headwinds faster if consumer adoption of diffusion/video creation tools ramps,” the analysts said, citing SNAP, Reddit and Pinterest.
Morgan Stanley also highlighted the app’s potential role in OpenAI’s long-term ambitions.
“We see this likely coming from digital advertising and (to a lesser extent) devices…with search/agentic and now video/social the canvases to capture time, engagement, data…and drive monetization,” the bank stated.
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