There’s a gold rush happening in AI right now, and the newest field is video generation. Google just released Veo 3. OpenAI is flexing with Sora. Runway keeps shipping updates.

But take a step back and ask: what is all this actually for?

If you watch the demos, these video models look like a big deal. The tech is wild. Crisp, realistic footage from a prompt. Anything you can imagine, on demand.

But here’s the obvious question: Who is paying for this?

So far, no one has a good answer.

Every company in this space is chasing something: market share, press, and bragging rights. There still isn’t a billion-dollar product. The flashy videos are impressive, but they are not driving serious revenue.

So why keep building? Because nobody wants to look like they are falling behind. Google cannot let OpenAI run the show. OpenAI does not want to get outdone by Google or Runway. The arms race is about being seen as the leader, not about landing paying customers.

The main use case is still unclear. Movie studios are not swapping their crews for AI yet. Advertisers still prefer the human touch. Even in Hollywood, the appetite for new tech is more cautious than you’d expect. Take the Volume technology used on recent Star Wars productions. It is as cutting-edge as it gets: giant LED walls that let you shoot anywhere in the universe, in real time. On paper, it is the perfect example of what new tech should enable. But many directors working for Lucasfilm have been hesitant to adopt it. Why? Because it requires a whole new style of filmmaking, with much more creative decision-making happening in post-production instead of on set. Most directors have not refined this workflow, and it shows. The tools are powerful, but the art of using them well is still a work in progress.

Elsewhere, TikTokers and YouTubers might use AI video models for a meme or two, but there is no sign that people want to auto-generate all their content. The killer app for this technology has not shown up yet.

So why is everyone pushing so hard? In the AI world, attention is currency. The real risk is being left behind. If you are not shipping something wild, you are invisible.

Here’s the truth: Veo 3 and the rest are incredible feats of engineering. Right now, though, they are a solution in search of a problem. Not worthless—just early. The business model is not clear. The audience is not clear. But in this race, looking slow is the only unforgivable sin.

We will keep seeing bigger models, more demos, and more breathless talk about “the future of video.” Maybe the real use case will show up. Or maybe, like in so many tech arms races before, the winners will not be the ones with the best tech, but the ones who figure out what people actually need.