TLDRs;
- Google expands Veo 3 to support 9:16 vertical videos, aligning with mobile-first viewing habits.
- Update introduces 1080p resolution for 16:9 format, improving output quality for commercial use cases.
- Veo 3 and Veo 3 Fast receive price cuts of nearly 50%, intensifying AI video market competition.
- Update ties directly to YouTube Shorts integration, boosting creator opportunities on Google’s platforms.
Google has rolled out a significant update to its Veo 3 AI video generator, introducing support for 9:16 vertical videos and higher 1080p resolution output.
The update applies to both Veo 3 and Veo 3 Fast, a lower-cost, accelerated version designed for quicker but slightly lower-quality video generation.
Developers using the Veo 3 API can now produce vertical videos by selecting the 9:16 aspect ratio, opening the door for more mobile-friendly content creation tailored to platforms like YouTube Shorts, Instagram Reels, and TikTok.
Vertical videos reshape content engagement
Vertical video is no longer a trend, it has become the default for mobile audiences. According to industry data, vertical videos capture nearly 14% more screen space than horizontal formats on smartphones, driving stronger engagement and completion rates.
Google’s update taps into this reality. The company is pushing Veo 3 to be the go-to tool for creators who want to optimize their work for social-first platforms. The timing is strategic, following Google’s earlier move to make Veo 3 available on YouTube Shorts, signaling tighter integration between AI generation tools and the company’s core video ecosystem.
For creators and marketers, this means more immersive storytelling opportunities and better performance on the platforms where audiences already spend most of their time.
Pricing cuts highlight AI commoditization
Beyond format support, Google has introduced a dramatic price reduction for Veo 3. The standard version now costs $0.40 per second, down from $0.75, while Veo 3 Fast has been slashed to $0.15 per second, down from $0.40.
This nearly 50% price cut underscores how quickly the AI video generation market is commoditizing. Competitors like Runway’s Gen-3 Alpha and OpenAI’s Sora are driving innovation and forcing pricing adjustments across the industry. With Runway starting at $12 per month and OpenAI bundling Sora with ChatGPT Plus at $20 per month, Google’s competitive strategy is clear, make Veo 3 both accessible and production-ready.
Positioning AI for scaled production use
Google’s emphasis on stability and scalability shows the company is moving beyond the research phase of AI video generation. The goal is to establish Veo 3 not just as an experimental tool but as a reliable production solution for businesses, creators, and agencies.
By expanding resolution limits (from 720p to 1080p for 16:9 aspect ratio) and adapting to vertical video, Google is signaling that Veo 3 can meet the technical requirements of commercial content production.
For advertisers, influencers, and digital publishers, this shift means they can use AI-generated video in campaigns with fewer trade-offs in quality or format.
Competition drives rapid innovation
The race to dominate AI-generated video is heating up. While Google is making Veo 3 cheaper and more versatile, its rivals are racing to capture creators through unique pricing models, subscription bundling, and specialized features.
The AI video industry is increasingly defined by two trends, format optimization for mobile and affordable, scalable access. As demand grows, platforms like Veo 3 are positioning themselves at the intersection of consumer behavior, content creation, and business strategy.
For now, Google’s latest update strengthens its footing in the space, ensuring Veo 3 remains competitive while signaling that the future of video is vertical, social-first, and AI-powered.
