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OpenAI reported a Q1 2026 operating margin of -122%, losing $1.22 for every dollar earned, with a $6.95 billion adjusted quarterly loss despite $5.7 billion revenue. The losses raise questions about AI industry commercial viability.
The article argues that AI-generated video has surpassed the 'slop' threshold, with major studios and streaming services adopting it for cost savings and commercial viability, forcing a redefinition of quality in content creation.