Chinese tech companies are leveraging the country's vast video content market to deploy advertising, film clips and short form videos automated by AI tools. Developed by Kuaishou, a short video platform, Kling AI ranks among top players worldwide when converting text or still images into video content.
According to Kuaishou, Kling AI is already in use by over 20,000 companies, including advertisers and animation studios. Kling AI at the recent World Artificial Intelligence Conference (WAIC) held in Shanghai announcement Kling 2.1 allows you to add sound effects to visuals generated in AI. Wei Xiong, an internet analyst at UBS Securities, has revealed that AI video generation could rebuild the content industry by increasing production efficiency, reducing creative barriers, and unlocking new monetization models.
Chinese startup challenges Google's video AI tools with top models
Bytedance, the parent company of Tiktok, controls the AI video modeling space. Artificial analysis, AI research company, Rank The first and third Baite Dance Tool of the top five text-to-video models released in the last two months. The Google model ranked 2nd and 4th, while the Kling AI ranked 5th.
Wei Xiong considers Chinese companies to be early leaders in the field despite growing international competition. He acknowledged current limitations on AI-generated videos, including clip length, motion consistency, and user control over the output.
Zeng Yushen, head of operations at Kling AI, said the Kling AI model is not limited to domestic users. She added that international markets such as Japan, Korea and Europe have gradually become important focus areas. In an exclusive interview with CNBC, she said that people observed that the big AI model is increasingly globalised, and that people observed that the product doesn't care about the country of origin.
Kling ai Generate It generated revenues of over 150 million yuan ($20 million) in the first quarter of 2025, with daily spending on the platform reaching 30 million yuan over the same period. The company has yet to reveal its Q2 results, but it has confirmed that users can subscribe to the tool, purchase credits, and create videos. Yushen refused to disclose the training costs for Kling's AI model.
Beijing Shengshu's rival startup Vidu was launched around the world about a year ago. By March 2025, we forecast annual revenue of $20 million via subscription.
Chinese startups are driving AI video innovation across multiple industries
Triolo, a partner at the advisory company, noted that Chinese companies are applying AI video tools in a variety of industries. Startups identify problems that companies are willing to pay to solve, leading to more effective AI applications. He cited 3DStyle, a Chinese startup that uses AI to design clothing styles and integrates them into automated, internet-connected manufacturing.
Amazon, Google and Microsoft are also actively involved in the AI video tools industry. Openai announced its video generator Sora to ChatGpt users last December. Almost a year later clearly Model. Kling Ai predated Sora despite an early release in June 2024.
This week, Alibaba introduced WAN 2.2the latest version of the video generation model. WAN 2.2 can control lighting, time, frame size and camera angle. WAN is open source and has been downloaded 5.5 million times since February, since embracing Face and the Chinese model scope platform.
Recent Tencent Release Hunyuan World uses mesh-based 3D generation for game development. Daniel Ahmad of Niko Partners revealed that the model reflects his goal of supporting Tencent's gaming team and leading game development.
Niko Partners revealed that more than half of Chinese game studios use AI to reduce costs and development time. However, Ahmad warned that inadequate integration with AI-generated content could in some cases lead to repulsion.
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