OpenAI is reportedly incurring daily costs of up to $15 million for its video generation app, Sora, leading to potential annual losses exceeding $5 billion. Despite Sora achieving over 4 million downloads, the cost of generating a 10-second video averages $1.30, significantly surpassing the current free usage rate. OpenAI is focusing on user growth and data acquisition, with executives admitting the current economic model is unsustainable. The company is considering reducing free usage and exploring monetization through paid services or advertising.
OpenAI Faces $5 Billion Annual Losses from Sora Video Generation
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