Neil Freiman

It reached a million downloads faster than ChatGPT, but then it had a huge punch.

People really weren't using the social media platform.

By January, downloads were down

45% according to TechCrunch.

Meanwhile, video generation like this is so expensive, takes up so much compute for a company like OpenAI.

Forbes estimated that OpenAI was perhaps blowing as much as $15 million per day.

And there was no way to make money off this particular consumer app.

You didn't have to pay for it.

There was no ads.

So it was just a money pit.

And OpenAI decided to

it's part of a broader strategic pivot that is trying to streamline all these apps and go after more enterprise consumers than just regular people.

No, but maybe, you know, there have been a bunch of other competitors jumping into the space.

You know, there's that Chinese company ByteDance, which is TikTok's owner, has its own video generation app that still appears to be going strong.

Google's also in this space.

So just because OpenAI is pulling back doesn't necessarily mean that AI video generation is completely dead.

It just might be a ceasefire.

But for OpenAI, you know, it was...

trying to do everything everywhere all at once, and it was not working.

It needs to get its finances in order ahead of this IPO.