Tech giant Google (GOOGL) is pushing to make AI video creation cheaper by introducing a new model, Veo 3.1 Lite, while also planning to lower prices for its Veo 3.1 Fast model. The announcement was well received, with shares rising about 5% at the time of writing. According to the company, Veo 3.1 Lite is its most cost-effective option yet and will allow developers to create high-volume video content at less than half the cost of Veo 3.1 Fast, but at similar speeds.
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In addition, the new model is designed to be flexible and easy to use. Indeed, Veo 3.1 Lite supports both text-to-video and image-to-video creation, and it allows developers to choose between landscape (16:9) and portrait (9:16) formats. It also supports 720p and 1080p resolutions, with video lengths that can be set to four, six, or eight seconds. The model is already being rolled out and is available through paid tiers on the Gemini API and Google AI Studio.
Interestingly, this move comes as competition in AI video changes. In fact, just last week, OpenAI said that it plans to stop offering its Sora video app as it focuses more on research related to robotics and real-world applications. As a result, Google’s focus on lowering costs and expanding access could help it attract more developers.
Are GOOGL Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 26 Buys and six Holds assigned in the past three months. Furthermore, the average GOOGL price target of $378.24 per share implies 31.9% upside potential.
