For a long time, competition around AI technology was thought to be an American-only problem. OpenAI, Google, Anthropic – these are just a few of the companies with offices in Silicon Valley that are actively conducting research and developing innovations on this topic. Nevertheless, there is one area where the tables have turned in AI technology development. China is not far behind when it comes to developing AI-generated videos. In fact, China is leading the way.
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ByteDance’s Seedance 2.0 and Kuaishou’s Kling are currently the number one rated independent video models, outperforming Western models in terms of realism, accuracy, and ease of use. Representatives of companies working on these innovations are focusing on this issue in particular, saying that U.S. AI models cannot produce good videos.
How did this happen?
Unique data benefits that no one else can imitate. In reality, it’s never about who can build a better model. It has always been a game of data, and China has had a natural advantage.
ByteDance controls TikTok, and Kuaishou controls one of the largest short-video social networks. They have an extensive database that includes not only high quality videos but also behavioral data. Every like, swipe, and share adds value to your data. While text data can be collected at scale through web scraping, it is virtually impossible for other competitors to collect this much video data from scratch. The only exception to this is Google’s Veo 3, which is built on top of YouTube videos, although there are restrictions on the type of content used.
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Meanwhile, OpenAI’s Sora model was shut down in March of this year due to the prohibitively expensive computing requirements of the video model.
Guardrails become looser and prices become cheaper.
But statistics aside, there are two other very real reasons why Chinese services are outperforming their competitors among creators. That means lower prices and more requests. Apparently, US services tend to reject all requests for free use of their software without giving a reason, as it violates their terms of service.
The real effects are already visible. According to one source, one retailer purchased 100,000 artificial intelligence videos in one purchase. This is an amount that was thought impossible just a year ago. Advertising, e-commerce, and entertainment industries are some of the sectors affected by this change.
While the US continues to lead when it comes to language models and programming languages, the situation is completely different when it comes to video content.
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