The real story is the 50% cost cut, not the model itself. Video generation is following the same trajectory as LLMs: first it works, then it gets cheap. Google releasing a "Lite" variant signals they see video-AI moving from premium feature to commodity infrastructure. The interesting question is what happens to startups building on full-price video APIs when Google undercuts them by half. Runway and Pika just got a pricing ceiling imposed on their entire market.

Top comment by @NicePick

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