Dataconomy
  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
Subscribe
No Result
View All Result
  • AI
  • Tech
  • Cybersecurity
  • Finance
  • DeFi & Blockchain
  • Startups
  • Gaming
Dataconomy
  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
Subscribe
No Result
View All Result
Dataconomy
No Result
View All Result

OpenAI reportedly burning $15M a day to power Sora video app

The cost equates to more than a quarter of OpenAI’s projected $20 billion in yearly revenue.

byKerem Gülen
November 12, 2025
in Industry
Home Industry
Share on FacebookShare on TwitterShare on LinkedInShare on WhatsAppShare on e-mail

OpenAI is reportedly spending an estimated $15 million per day, or $5.4 billion annually, to power its new Sora video generation app, according to an analysis by Forbes. This high operational cost, which Forbes noted would be equivalent to more than a quarter of the company’s projected $20 billion annual recurring revenue, comes as the AI firm reportedly lost over $12 billion last quarter.

I would like to clarify a few things.

First, the obvious one: we do not have or want government guarantees for OpenAI datacenters. We believe that governments should not pick winners or losers, and that taxpayers should not bail out companies that make bad business decisions or…

— Sam Altman (@sama) November 6, 2025

The estimates, which OpenAI declined to comment on, are based on analyst calculations and app usage data. The Sora app, which launched on iOS in September, reached 4.5 million downloads by Halloween. Forbes cited an estimate from Deepak Mathivanan of Cantor Fitzgerald, who calculated that a standard 10-second Sora video costs OpenAI approximately $1.30 to generate, a figure that analyst AJ Kourabi of SemiAnalysis deemed “reasonable.”

Stay Ahead of the Curve!

Don't miss out on the latest insights, trends, and analysis in the world of data, technology, and startups. Subscribe to our newsletter and get exclusive content delivered straight to your inbox.

Forbes arrived at the $15 million daily figure by estimating that if 25% of Sora’s 4.5 million users post an average of 10 videos a day, it would result in 11.3 million daily videos. This high burn rate was seemingly confirmed by OpenAI’s head of Sora, Bill Peebles, who stated on October 30 that “The economics are currently completely unsustainable.”

Analysts described the strategy as a “classic internet playbook” of absorbing significant losses to capture market share and build user engagement. The free access also allows OpenAI to gather massive amounts of valuable training data, as users provide text prompts for the videos Sora creates. Analysts also noted that the cost of video generation is expected to decrease significantly over the next year, with Mathivanan estimating it could get five times cheaper by 2026.


Featured image credit

Tags: openAIsora

Related Posts

How professionals avoid information overload and make confident decisions

How professionals avoid information overload and make confident decisions

December 3, 2025
AWS re:Invent 2025: Day 1-3 announcements in a nutshell

AWS re:Invent 2025: Day 1-3 announcements in a nutshell

December 3, 2025
Anthropic hires legal heavyweights for a potential 2026 IPO

Anthropic hires legal heavyweights for a potential 2026 IPO

December 3, 2025
Singularity Compute launches NVIDIA GPU cluster to supercharge enterprise AI and Web3 workloads

Singularity Compute launches NVIDIA GPU cluster to supercharge enterprise AI and Web3 workloads

December 2, 2025
How AI-enhanced video is leveling up online lessons—and why it matters for EdTech at scale

How AI-enhanced video is leveling up online lessons—and why it matters for EdTech at scale

December 2, 2025
Samsung and Turkish Airlines launch smart baggage tracking service

Samsung and Turkish Airlines launch smart baggage tracking service

December 2, 2025

LATEST NEWS

Spotify Wrapped 2025: More layers, stories and connection than ever before

Your next Android call might tell you exactly why it is urgent

Your Android 16 phone gets a dark mode that works on every app

Raspberry Pi just got up to $25 more expensive

Users are mad about app suggestions in the highly priced ChatGPT Pro Plan

Red Dead Redemption is now available on Netflix Games mobile

Dataconomy

COPYRIGHT © DATACONOMY MEDIA GMBH, ALL RIGHTS RESERVED.

  • About
  • Imprint
  • Contact
  • Legal & Privacy

Follow Us

  • News
    • Artificial Intelligence
    • Cybersecurity
    • DeFi & Blockchain
    • Finance
    • Gaming
    • Startups
    • Tech
  • Industry
  • Research
  • Resources
    • Articles
    • Guides
    • Case Studies
    • Glossary
    • Whitepapers
  • Newsletter
  • + More
    • Conversations
    • Events
    • About
      • About
      • Contact
      • Imprint
      • Legal & Privacy
      • Partner With Us
No Result
View All Result
Subscribe

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Policy.