AI generating high-quality animation is more impressive than photorealism because of the extreme scarcity of training data (thousands of hours vs. millions for video). Sora 2's success suggests a fundamental improvement in its learning efficiency, not just a brute-force data advantage.

The computational requirements for generative media scale dramatically across modalities. If a 200-token LLM prompt costs 1 unit of compute, a single image costs 100x that, and a 5-second video costs another 100x on top of that—a 10,000x total increase. 4K video adds another 10x multiplier.

While today's focus is on text-based LLMs, the true, defensible AI battleground will be in complex modalities like video. Generating video requires multiple interacting models and unique architectures, creating far greater potential for differentiation and a wider competitive moat than text-based interfaces, which will become commoditized.

Sora doesn't process pixels or frames individually. Instead, it uses "space-time tokens" — small cuboids of video data combining spatial and temporal information. This voxel-like representation is the fundamental unit, enabling the model to understand properties like object permanence through global attention.

The generative video space is evolving so rapidly that a model ranked in the top five has a half-life of just 30 days. This extreme churn makes it impractical for developers to bet on a single model, driving them towards aggregator platforms that offer access to a constantly updated portfolio.

A critical weakness of current AI models is their inefficient learning process. They require exponentially more experience—sometimes 100,000 times more data than a human encounters in a lifetime—to acquire their skills. This highlights a key difference from human cognition and a major hurdle for developing more advanced, human-like AI.

To analyze video cost-effectively, Tim McLear uses a cheap, fast model to generate captions for individual frames sampled every five seconds. He then packages all these low-level descriptions and the audio transcript and sends them to a powerful reasoning model. This model's job is to synthesize all the data into a high-level summary of the video.

The primary challenge in creating stable, real-time autoregressive video is error accumulation. Like early LLMs getting stuck in loops, video models degrade frame-by-frame until the output is useless. Overcoming this compounding error, not just processing speed, is the core research breakthrough required for long-form generation.

The primary performance bottleneck for LLMs is memory bandwidth (moving large weights), making them memory-bound. In contrast, diffusion-based video models are compute-bound, as they saturate the GPU's processing power by simultaneously denoising tens of thousands of tokens. This represents a fundamental difference in optimization strategy.