OpenAI may be spending as much as $15 million per day to operate its Sora AI video app, according to estimates from Forbes and analysts familiar with AI compute economics. Despite projecting a $20 billion annual recurring revenue run rate, the company reported a $12 billion loss last quarter, raising questions about the sustainability of its expansion.
Launched on September 30, Sora quickly became a viral hit on Apple’s iOS, reaching 4 million downloads by Halloween. The app allows users to generate 10-second AI videos for free, producing millions of clips daily. Analysts estimate each video costs roughly $1.30 in compute power, mainly from GPU-intensive processes.
OpenAI’s head of Sora, Bill Peebles, acknowledged the model’s “completely unsustainable” economics. Experts say the company is prioritizing market share and data collection over near-term profitability, mirroring early internet growth strategies.
CEO Sam Altman has stated that current ad models can’t cover Sora’s costs, though monetization through premium users or enterprise licensing may come later. For now, the free use of Sora continues to fuel both massive engagement and mounting losses.
