Introduction to OpenAI’s Sora App

OpenAI, a leading AI research organization, has been making headlines with its latest innovation – the Sora app. This AI-powered video generation tool has been gaining popularity, but at a steep cost. According to recent estimates, OpenAI is burning through as much as $15 million per day to keep the app running.

The Cost of AI Video Generation

As reported by Forbes, the Sora app’s estimated 4.5 million users are generating a staggering 11.3 million videos per day. With each video costing around $1.3 to generate, the total daily cost adds up to nearly $15 million. This raises concerns about the sustainability of the app’s current business model.

Comparison to TikTok

A comparison with TikTok, a leading social media platform, puts the Sora app’s costs into perspective. TikTok generates $23 billion in annual revenue from its 8.6 billion videos uploaded per year. However, as noted by Will Lockett’s Newsletter, the cost of generating these videos using OpenAI’s Sora app would be significantly higher, potentially exceeding $645 billion per year.

OpenAI’s Response to Unsustainable Economics

In response to the unsustainable economics of the Sora app, OpenAI has introduced a new revenue stream. As reported by Mashable, users can now pay $4 for 10 extra video generations per day, in addition to the 30 free generations they receive. This move aims to offset the costs of running the app and make it more viable in the long term.

Expert Insights and Analysis

Experts in the field have weighed in on the situation, with some expressing concerns about the app’s business model. The introduction of paid tiers may help alleviate some of these concerns, but it remains to be seen whether this will be enough to make the app sustainable.