Kuaishou Technology anticipates increased expenditure on artificial intelligence to address concerns regarding the monetisation of its AI tools. This investment aims to enhance the platform's AI capabilities, potentially impacting profit margins in the short term. The company is focusing on improving its AI-driven content creation and recommendation algorithms to boost user engagement and advertising revenue. Kuaishou's AI strategy includes automated ad solutions and synthetic video generation, with the goal of integrating AI into every aspect of its operations.
Kuaishou's AI initiatives have already shown promising results, with daily ad spend on AI-generated content reaching RMB 30 million in Q4 2024. The company's AI visual generation model, Kling, has generated over RMB 100 million in revenue since its launch. Kuaishou is also collaborating with the China Computer Federation to establish the "CCF-Kuaishou Large Model Explorer Fund," supporting research and development in next-generation large models. These investments reflect Kuaishou's commitment to leveraging AI to drive growth and innovation in the competitive social media market.
