Google has unveiled a new AI model for video generation that is significantly cheaper than previous solutions.

Veo 3.1 Lite is now available to developers via the Gemini API and Google AI Studio, with usage costs two to three times lower than the Veo 3.1 Fast version.

The model supports video creation based on text and images in both horizontal and vertical formats. Users can choose between 720p or 1080p resolution, as well as video lengths of four, six, or eight seconds.

For comparison, generating one second of content with sound in the basic Veo 3.1 cost around $0.40. The Fast version is priced at $0.15 per second, while Lite costs just $0.05 at 720p resolution.

Videos lasting eight seconds can be created in under a minute.

Notably, Google released this new solution and reduced video generation prices shortly after OpenAI's closure of the Sora project. Although official reasons for the decision were not disclosed, experts link it to high service maintenance costs.

Meanwhile, Logan Kilpatrick, head of product for Google AI Studio, stated during the Veo 3.1 Lite presentation that "Video is here to stay."

Sora's Closure Sparks Competition

One week after Sora's closure, alternative AI generators like Kling AI and Runway saw a significant increase in their user base.

The number of weekly active users for Kling AI, developed by China's Kuaishou Technology, grew by 4%, reaching 2.6 million. Prior to OpenAI's announcement, the project was already leading in monthly audience, with 7.8 million users in March compared to Sora's 4.7 million.

Competing platforms Runway and Vidu also reported a 1% increase in weekly users.

Sora launched as a standalone app in the fall of 2025, initially generating excitement due to its user-friendly interface and social features. However, its popularity waned quickly, with monthly active users steadily declining since the beginning of the year.

The exit of a major player opens new financial opportunities for Kling AI. A week after OpenAI's announcement, the Chinese company informed analysts that it expects more than double its annual revenue.

Recall that in February, Kuaishou introduced the third version of its video generator, Kling AI.