{"id":6621,"date":"2025-11-11T20:59:49","date_gmt":"2025-11-11T20:59:49","guid":{"rendered":"https:\/\/musictechohio.online\/site\/openai-burning-cash-ai-video-slop-sora\/"},"modified":"2025-11-11T20:59:49","modified_gmt":"2025-11-11T20:59:49","slug":"openai-burning-cash-ai-video-slop-sora","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/openai-burning-cash-ai-video-slop-sora\/","title":{"rendered":"OpenAI Is Reportedly Burning a Ludicrous Amount of Cash on Sora"},"content":{"rendered":"
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Despite its half-a-trillion-dollar valuation<\/a>, the reality is that OpenAI is almost certainly burning through cash at an alarming rate.<\/p>\n

According to recent filings<\/a>, the ChatGPT maker lost a whopping $12 billion<\/a> last quarter alone. Yet, it wants to spend well over $1 trillion<\/a> over the next several years, once again stoking fears over an AI bubble<\/a> that could wipe out the entire US economy<\/a> if it were to burst.<\/p>\n

Even its AI video-generating app, Sora, which debuted in late September<\/a>, is likely costing the company an astronomical amount of money to run, as Forbes<\/em> reports<\/a>. The app \u2014 which is currently being used to spew a disturbing quantity of largely meaningless AI slop<\/a> onto the web, but is still only available for a minuscule number of early users \u2014 could already be costing the firm $5 billion a year, or roughly $15 million per day<\/em>, according to the publication\u2019s estimates.<\/p>\n

A single ten-second clip could cost OpenAI roughly $1.30, Cantor Fitzgerald analyst Deepak Mathivanan told Forbes<\/em>.<\/p>\n

Even OpenAI\u2019s Sora lead Bill Peebles admitted in an October 30 tweet<\/a> that the \u201ceconomics are currently completely unsustainable.\u201d<\/p>\n

While we don\u2019t have a strong sense of the accuracy of Forbes\u2019 estimates, as they rely on \u201cseveral moving targets,\u201d such as fluctuating prices of AI chips, efficiency, and the number of users and videos being generated, the bottom line is that it\u2019s staggeringly expensive to run a large-scale video-generating app<\/a>.<\/p>\n

Using AI to generate video is vastly more resource-intensive<\/a> than having a tool like ChatGPT output text, which already requires vast amounts of resources<\/a>.<\/p>\n

Besides an enormous and growing carbon footprint<\/a>, making financial sense of OpenAI\u2019s foray into AI video slop remains difficult. In an early October blog post<\/a>, OpenAI CEO Sam Altman admitted that the company launched the app in the absence of a sound financial plan to recoup the enormous costs of running Sora, let alone meaningfully address glaring copyright infringement issues<\/a> that persist to this day<\/a>.<\/p>\n

\u201cIt\u2019s a classic internet playbook to not focus on the costs initially so much as building an audience and building an engagement because we\u2019ve seen time and again, these companies can figure out ways to monetize this engagement,\u201d financial group Mizuho analyst Lloyd Walmsley told Forbes<\/em>.<\/p>\n

Late last month, OpenAI started limiting users to 30 free videos per day and started charging $4 for roughly ten additional videos<\/a> beyond the daily limit.<\/p>\n

But even the daily limit could soon go away.<\/p>\n

\u201cEventually we will need to bring the free gens down to accommodate growth (we won\u2019t have enough [graphics processing units] to do it otherwise!),\u201d Peebles tweeted<\/a>, \u201cbut we\u2019ll be transparent as it happens.\u201d<\/p>\n

\u201cIn the meantime, enjoy the crazy usage limits,\u201d he added.<\/p>\n

Apart from blowing billions of dollars on slop memes that are polluting the internet, OpenAI has plenty of other Sora-related fires to put out as well. For one, the company is actively drawing the ire of rightsholders over copyright issues. Last week, a group representing Studio Ghibli, Bandai Namco, Square Enix, and other major Japanese publishers sent a letter to OpenAI<\/a> demanding that it stop using their copyrighted content to train the video-generating AI tool.<\/p>\n

In short, Sora is only the tip of the iceberg of OpenAI\u2019s alarming financial situation. As the company continues to light tens of billions of dollars on fire, the firm is under major pressure to justify its spending commitments.<\/p>\n

And at the end of the day, it\u2019s all to generate clips of SpongeBob SquarePants cooking meth<\/a> and Mister Rogers going on expletive-filled rants<\/a>.<\/p>\n

More on Sora:<\/strong> People Are Using Sora to Create Unbelievably Cursed Gender Reveals<\/em><\/a><\/p>\n

The post OpenAI Is Reportedly Burning a Ludicrous Amount of Cash on Sora<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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Despite its half-a-trillion-dollar valuation, the reality is that OpenAI is almost certainly burning through cash at an alarming rate. According to recent filings, the ChatGPT maker lost a whopping $12…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177,179],"tags":[],"class_list":["post-6621","post","type-post","status-publish","format-standard","hentry","category-artificial-intelligence","category-openai"],"_links":{"self":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/6621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/comments?post=6621"}],"version-history":[{"count":0,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/6621\/revisions"}],"wp:attachment":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/media?parent=6621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/categories?post=6621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/tags?post=6621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}