Kuaishou Technology’s AI video content generation tool, Kling, whose business is growing at an alarming rate and is expected to hit $100 million in sales by next February.
The company said that Kling brought in more than 100 million yuan ($14 million) in revenue every month in April and May.
Kling is now one of the world’s highest-grossing AI video generation tools, demonstrating Kuaishou’s deep competitive advantages in generative AI.
Kling AI operates by selling digital tokens, which it calls “inspiration credits.” Users buy credits and use them to make videos. This is in part due to the nature of the platform, which allows users to spend more credits to create higher-fidelity detailed videos or to produce more videos at lower fidelity with fewer credits.
Today, Kuaishou sells 66 inspiration credits for one dollar. Top-quality videos cost around 100 credits apiece, while simpler videos are just 20 credits. This credit system makes service accessible and scalable to individual creators and businesses. Since its introduction a little more than a year ago, Kling has slowly attracted a devoted following of users, using a simple method of creating fast, fun video content.
Solid profits catch investors off guard
Kuaishou benefited from the strong showing of its social e-commerce and live commerce service Kling AI in surpassing market expectations when it reported its March-quarter financial results last week.
The company’s fast-growing revenue from AI proved to be the standout performer, helping to send the stock up. Kuaishou’s shares surged after the announcement, indicating investor confidence in the company’s AI strategy.
Kuaishou is one of several major Chinese internet companies turning to artificial intelligence as a new growth driver. Many companies are betting big on AI, believing that building new amenities driven by the technology will amass users in ways that generate revenue beyond their traditional platforms.
Competition grows stronger in the AI video generation market
The field of AI video generation is an increasingly crowded space. Meanwhile, large Chinese players like Alibaba Group and Tencent Holdings have introduced or revamped their own AI video and creative tools this year. New startups are also entering the niche: AI startup Manus, for example, fairly recently demoed a product that appears to create videos on its own just from a written script.
Internationally, companies like OpenAI have built tools for creating films, such as Sora, which helps automate video production. Runway AI, focusing on video production and editing, reached a $3 billion valuation in April. This proves a fast-rising, high-investing interest in AI on the video side worldwide.
Kling is known for its token-based business model and steadily growing revenue. Its success also hints that there may be significant demand for AI-based tools that generate videos rapidly and inexpensively.
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