1、ab11 July 2025Global ResearchChina AI Intelligence AI application:Video generation as a leading use case with rapid monetisation AI video generation:Key AI vertical with rapid monetisation progress We recently highlighted content creation as a key AI application and monetisation vertical.We see AI e

2、nabling scalable and cost-efficient production of multimodal content across text,images,audio and video,and video generation has progressed rapidly in AI commercialisation.Globally,Runway(for AI video creation and editing)reached annualised revenue of US$84m by December 2024,and per news reports it

3、expects this to triple in 2025.In China,Kuaishous Kling achieved US$100m in ARR by March 2025,just 10 months after launching.Demand wise,we see broad use cases across film/drama,advertising and game development,where AI-generated video can meaningfully lower production costs.Supply wise,continued im

4、provements in model capabilities and declining inference costs are driving wider adoption.We believe AI video generation has the potential to reshape the content industry by enhancing production efficiency,lowering barriers to creation and unlocking new monetisation models.Chinese models showing ear

5、ly success in AI video generation While we note some consolidation in the LLM domain among leading companies in both the US and China,competition in AI video generation models is at an earlier stage,and some Chinese companies have emerged as early leaders in this space.According to Artificial Analys

6、is,Chinese models account for c60%/50%of the top 15 rankings in text-to-video/image-to-video generation.We note:1)most developers have launched their video generation models as stand-alone products,separate from their core LLMs;2)AI video generation models are in the early development stages and lea