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A $20/month user costs OpenAI $65 in compute. AI video is a money furnace
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Overview
OpenAI discontinued the Sora AI video product due to unsustainable economics, where production costs exceeded revenue. The financial model resembles a restaurant charging significantly less than the cost of food preparation, leading to inevitable losses.
Summary from aedelon777.substack.com.
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aedelon777.substack.com
A $20/month user costs OpenAI $65 in compute. AI video is a money furnace
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Community reactions
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Hacker News · aedelon777.substack.com
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Based on 5 sampled comments from this thread. Analyzed 2026-04-03.
- Praise: OpenAI's ability to generate videos quickly suggests that their AI editing capabilities are improving, potentially enhancing user experience and engagement.
- Praise: Despite high compute costs, OpenAI's revenue model appears sustainable, as they spend less than a third of their revenue on compute, indicating potential profitability.
- Concern: The cost calculations for AI video generation seem inflated and based on incorrect assumptions, which raises concerns about the reliability of the financial analysis.
- Concern: The $20/month subscription model may not be sustainable if compute costs remain high, suggesting a need for OpenAI to find more cost-effective solutions.