Investment Rating - The report assigns an "Outperform" rating for the industry [1]. Core Insights - OpenAI's new audio and video generation model, Sora 2, represents a significant advancement in AI video generation technology, offering enhanced video quality and native audio generation capabilities [5][9]. - Sora 2's architecture, known as Diffusion Transformer (DiT), improves the coherence of video frames and the accuracy of visual content matching with textual semantics [10][12]. - The model's application spans various fields, including marketing, education, product showcasing, and self-media creation, with marketing accounting for the largest share at 30% [21]. Summary by Sections 1. Sora's Architecture and Advantages - Sora utilizes a unique DiT architecture that combines diffusion models with transformers, enhancing video generation from text [10]. - Compared to other models like Gen-2 and Lumiere, Sora offers longer video generation times (up to 60 seconds) and supports multiple generation types, including T2V, I2V, V2V, and VFI [12][13]. 2. Performance Upgrades in Sora 2 - Sora 2 addresses the silent video limitation of its predecessor by enabling native audio generation that matches the video context [14]. - The model significantly improves physical simulation accuracy, correcting issues related to fluid dynamics and character movements, resulting in a realism increase of 36%-70% in various scenarios [16][19]. 3. Broad Application Areas - Sora 2 is applicable in diverse sectors, with marketing being the most prominent, allowing businesses to produce high-quality content at drastically reduced costs [21][23]. - For instance, the cost of producing beauty advertisements has plummeted from 8,000 yuan to 25 yuan, representing a savings of approximately 99.70% [24]. 4. Industry Implications - The introduction of Sora 2 marks a shift towards industrial-scale production in AI video technology, with potential future applications in film production, game development, and virtual live streaming [25].