AI Video and Avatars: HeyGen, Synthesia, Sora, Veo — 2026-09-25
This week's big story is the final closure of Sora's API on September 24, as revenue consolidates around avatar-first platforms. HeyGen's scale ($200M+ ARR) and a new California law requiring disclosure of AI-generated performers in ads define the market's direction. Meanwhile, a footballers' campaign against deepfakes keeps likeness disputes in the headlines.
AI Video and Avatars: HeyGen, Synthesia, Sora, Veo — 2026-09-25
Top developments
OpenAI closes Sora's API — revenue shifts to avatar platforms
OpenAI shut down Sora's API on September 24, with delivery infrastructure consolidating around Sora 2 storytelling prompts even as Kling, HeyGen and Synthesia capture the commercial demand. The piece frames the split clearly: video-language models get attention, but revenue is accumulating in trained-avatar and translation workflows. This matters for anyone tracking which AI video products actually monetize.
Sora 2 and Veo 3.1 now integrated directly into HeyGen's pipeline
HeyGen's updated 2026 YouTube-generation guide confirms Sora 2 and Veo 3.1 are built into its generation pipeline — notable since standalone access to those models runs $200+/month and $250+/month respectively. This reflects the aggregator strategy: avatar platforms reselling frontier model output inside subscription tiers. HeyGen's own Creator plan sits at $24/month, positioned as the cost-effective option for regular YouTube production.
California law: synthetic performers in ads must be disclosed
On September 16, Gov. Newsom signed a law requiring disclosure of AI-generated performers in advertisements, signing it at SAG-AFTRA headquarters to underscore its worker-protection framing. For ad-industry users of HeyGen, Synthesia and similar avatar tools targeting US audiences, this creates a concrete compliance requirement for synthetic spokespeople.
Footballers launch campaign against AI deepfakes
Cole Palmer and Lucy Bronze are among the footballers backing a new campaign calling for stronger legal protection against deepfakes and AI-generated content, published September 23. It adds athlete likenesses to the growing list of contested uses of face-generation tech — the same likeness question that consumer avatar platforms keep running into.
Zelda Williams criticizes AI videos of her late father
Zelda Williams publicly called out "robotic and terrible" AI-generated videos of Robin Williams on September 22, telling the makers to "let him rest" and "have some shame." The episode is the latest in a string of estate-likeness disputes that avatar video tools have yet to adequately address.
Local view
Chinese-language outlets continue to frame AI video as large-scale commercial infrastructure: a CSDN review notes that in 2026 text-to-video has "moved from lab to creator toolbox," with clips extending to 30 seconds and native 4K output, benchmarking Jimeng, Kling and Zhaodian head-to-head. Chinese regulatory commentary is also active — a Sohu piece from the Anqing market-supervision bureau (September 23) explains that avatars doing livestream commerce in China must now declare "I am AI" in the stream itself.
Context & numbers
- HeyGen: $205M ARR estimated as of June 2026, up from $123M at end-2025; 30M+ users across 196 countries, 85% of the Fortune 100 as customers, 118M+ videos created.
- Kling AI reached a $300M annualized revenue run rate as of January 2026.
- Runway credit burn rates: Gen-4 Turbo = 5 credits/sec, Gen-4 = 12, Gen-4.5 = 25; Kling Standard plan $6.99 for 660 credits.
On the radar
- Enforcement details of California's AI-ad disclosure law — how platforms like HeyGen and Synthesia implement "synthetic performer" labels in exported ad creatives.
- Whether OpenAI's Sora API shutdown pushes more developers toward Kling and Runway APIs for programmatic video.
- Watch for more estate-likeness disputes after the Robin Williams AI video controversy — a recurring pattern flagged as likely to repeat.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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