Here’s How Much Cash OpenAI Is Burning On AI Video App Sora. What It Means

ByPhoebe Liu,

Forbes Staff.

F

or a company that’s burning more than twice what it’s earning, OpenAI is giddily rolling out some ingeniously reckless new ways of racking up losses. Valued at about $500 billion, the AI behemoth on Thursday projected an annual recurring revenue run rate of $20 billion. Which is all well and good until you remember it lost more than $12 billion last quarter.

On September 30, OpenAI debuted its Sora video creation app for Apple’s iOS platform racking up a stunning 1 million downloads in a week despite an invitation-only rollout, inspiring a swoon of fawning coverage and vast slop of fantastical Ring security videos, gratuitously farting celebrities (deceased only), and some truly disturbing home shopping network ads. By Halloween the app had been downloaded 4 million times, per AppFigures, and was churning out millions of 10-second AI-generated videos per day.