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Glenn Kaonang · · 6 min readThe quiet AI video platform chasing $50m before Sora 2 catches on
Using apps to make AI videos isn’t for those on a budget.
The top tier of Google Veo 3, for instance, costs US$249.99, which will allow you to make about 83 videos. About half of what you pay goes to cover Google’s compute time.
OpenAI’s newly launched Sora 2 tops out at US$200 a month. The original Sora was estimated to cost US$1 in computing power for each video generated.
Despite the high costs involved, the potential windfall of AI video generation means Sora has more competitors than ChatGPT.
Image credit: Arsal Ysfin
But not every AI video app is charging these rates, and at least one, PixVerse, a platform developed by China-based AIsphere, claims to have cracked the economics. According to co-founder Jaden Xie, PixVerse is on track to achieve US$50 million in annual recurring revenue (ARR) by the end of this year.
While OpenAI is wrestling with the economics of Sora, PixVerse offers a window into how companies are building sustainable businesses around the sector, which is projected to hit a market size of US$2 billion by 2030.
“What OpenAI has released proves that mobile-first consumers are the biggest market – a good proof of our strategy,” Xie tells Tech in Asia.
Betting on mobile
Xie, who was a director of China-based VC firm Lighthouse Capital, co-founded AIsphere in April 2023. His co-founder Changhu Wang previously led ByteDance’s AI lab and vision technology division.
Despite having its roots in China, PixVerse has intentionally targeted the global market since day one. Its first version was launched in January 2024, a month ahead of Sora. It released its latest model, PixVerse V5, in August.
The company secured US$60 million in series B funding led by Alibaba in September, bringing its total raised capital to US$115 million. It’s planning to close an even bigger round in early 2026, Xie tells Tech in Asia.
PixVerse claims to have over 100 million registered users globally, while the number of paying users is inching closer to the one million mark. Most of the growth is organic, Xie says, with only a “few million dollars” spent on marketing.
PixVerse’s mobile app is available on iOS and Android. / Photo credit: PixVerse
The profitability question
Rivals claiming similar wins
Quality or quantity
Stay ahead in Asia’s tech landscape
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PixVerse proves AI video can be profitable. It’s hit US$50 million in ARR and has nearly 1 million users, while rivals like Sora still burn cash.
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