Google has launched Veo 3.1 Lite, an affordable AI video generator, significantly reducing costs compared to previous versions.
Google has launched Veo 3.1 Lite, a new AI video generation model that offers a more affordable alternative to its previous versions. Available through the Gemini API and Google AI Studio, this model's usage costs are two to three times lower than the Veo 3.1 Fast variant.
Veo 3.1 Lite enables users to create videos from text and images in both horizontal and vertical formats, with resolutions of 720p or 1080p, and lengths of four, six, or eight seconds. The pricing structure shows a significant decrease: generating one second of content with sound in the basic Veo 3.1 costs approximately $0.40, while the Fast version is priced at $0.15 per second. In contrast, the Lite version costs only $0.05 at 720p resolution.
Users can produce videos lasting eight seconds in under a minute, enhancing accessibility for developers.
This launch comes shortly after OpenAI announced the closure of its Sora project, which some experts attribute to high maintenance costs. Logan Kilpatrick, head of product for Google AI Studio, emphasized the relevance of video creation, stating, "Video is here to stay."
Market Dynamics Post-Sora Closure
In the wake of Sora's shutdown, competing AI video generators like Kling AI and Runway have reported a surge in their user bases. Kling AI, developed by Kuaishou Technology, saw a 4% increase in weekly active users, reaching 2.6 million. Prior to the Sora announcement, Kling AI had already attracted 7.8 million users in March, compared to Sora's 4.7 million.
Runway and Vidu also recorded a 1% rise in their weekly user figures. Sora, which launched as a standalone app in late 2025, had initially drawn interest with its user-friendly design and social features, but its user engagement declined steadily throughout the year.
The exit of a major competitor like Sora is expected to create new revenue opportunities for Kling AI, which has projected to more than double its annual earnings following OpenAI's announcement. Earlier this year, Kuaishou had introduced the third version of Kling AI, further solidifying its market position.
