OpenAI's Sora Video Tool Drives AI Stocks Up

The advent of artificial intelligence (AI) technology across verticals has driven up the prices of cryptocurrencies linked to AI. The surge received a renewed push as Sam Altman’s OpenAI last Friday unveiled Sora, its new AI tool that converts text to video.

The announcement was received with excitement among the AI sector players which viewed the development as another step towards the moon.

Now, you might be wondering what the fuss around this new service is.

So... What is OpenAI's Sora?

Sora is an upcoming generative AI model developed by OpenAI, that specialises in text-to-video generation. The model accepts textual descriptions, known as prompts, from users and generates short video clips corresponding to those descriptions. 

As per CoinGecko, the market capitalisation of AI tokens surged more than 6% within the last 24 hours to $15.6 billion.

Worldcoin (WLD) rose by 30% to its all-time high (ATH) of $7.64 immediately following the announcement. At press time, the token was trading a little above $7.

 

Source: CoinGecko

Worldcoin is a crypto project co-founded by OpenAI CEO Sam Altman. Only recently, its crypto wallet application, called World App, hit the benchmark of more than one million users.

 

Source: Twitter/ Worldcoin

Meanwhile, other prominent AI-driven cryptocurrencies such as Ocean Protocol (OCEAN) and Fetch.AI (FET) both rose more than 10% within 24 hours of the announcement.

Within the last 24 hours, AI tokens such as DeepFakeAI (FAKEAI) rose 84%, PureFi (UFI) rose 37.7%, and PaLM AI (PALM) rose 33.2%—the highest price rally among AI tokens.

 

Source: CoinGecko

The crypto market alone is not impacted by the AI frenzy, the traditional market is also dominated by AI-fuelled stocks.

Only recently, we reported that the market cap of American microchip multinational firm Nvidia surpassed that of tech giants Alphabet (which owns Google) and Amazon.

Nvidia is now the third largest US company with a market cap of $1.8 trillion.

The chipmaker provides its custom AI services to OpenAI, Microsoft, Alphabet and Meta among others.

Recommended Read: Why Are Blue Chip Stocks Important?

The AI boom is influencing both the TradFi and DeFi markets big time, and there is no sector which is untouched by the all-pervasive technology.

BitDelta traders interested in trading AI tokens can join the party now!