A $20/month user costs OpenAI $65 in compute. AI video is a money furnace

https://aedelon777.substack.com/p/i-did-the-math-on-sora-ai-video-is

I Did the Math on Sora. AI Video Is a Money Furnace.

OpenAI killed its most hyped product since ChatGPT. The reason has nothing to do with product quality. It’s structural economics.

Aedelon Press

This seems to have a healthy helping of AI editing help (if not fully generated by AI). The links don't quite go to the sources that they should and there's a lot of AI-isms.

Anyways, the calculation for the costs seem crazy high (and are pulled from an ft article). In particular they are based off a calculation that assumes Sora videos take 10 min to generate (which seems simply wrong; I've personally generated Sora videos that take less than 10 min to return fully formed), fully saturate 4 H200s at once (this seems wrong with batching; I would assume they're batching a lot of tokens together per forward pass), and, crucially, that OpenAI is paying full spot, end-user pricing for an H200 (at $2 an hour). As an individual, I can rent an H200 for $2 an hour on e.g. vast.ai (and sometimes even cheaper than that!). There is absolutely no way OpenAI is spending anywhere near that number.

I also have no idea where the Appfigures $2.1 million comes from. As far as I can tell it doesn't exist at all in the linked website.

I don't really trust the numbers here.

Sora by OpenAI Stats on the App Store · Downloads, Revenue, Keywords, Product Pages, Reviews, SDK...

Analyze Sora by OpenAI's download & revenue, audience demographics, user acquisition, SDKs, ratings, on the App Store

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