Kuaishou's Keling AI Earns $500M ARR; Live-Streaming Revenue Declines
Kuaishou's live-streaming revenue and user growth are declining, prompting the company to focus on its Keling AI initiative, an AI-focused product that directly generates revenue. Keling, launched in June 2024, uses a direct-charging model for text-to-video and image-to-video capabilities, and Kuaishou is considering spinning it off, potentially positioning it against ByteDance's Seedance 2.0. Keling AI's revenue exceeded 650 million yuan in Q1 2026, with an annualized revenue run-rate (ARR) of nearly $500 million in March 2026, albeit representing only about 2% of Kuaishou's annual revenue.
Key Takeaways
- Keling AI, launched June 2024, achieved over 650 million yuan in Q1 2026 revenue with a nearly $500 million ARR by March 2026.
- Kuaishou's live-streaming revenue dropped 13.5% year-on-year in Q1 2026 to 8.49 billion yuan, its lowest in 16 quarters.
- Keling AI's current ARR represents only about 2% of Kuaishou's annual revenue.
- Kuaishou is considering spinning off Keling AI, envisioning a $20 billion valuation to challenge ByteDance's Seedance 2.0.
- Daily active users (DAU) grew 1% year-on-year to 413 million; monthly active users (MAU) increased 8% to 772 million in Q1 2026.
Why It Matters
Kuaishou's pivot to direct AI monetization via Keling AI signals a strategic shift away from declining live-streaming revenues, which underpin its ecosystem. The significant growth of Keling AI, a generative video tool, suggests a potential new revenue stream for platforms facing user saturation and content monetization challenges. This move positions Kuaishou directly against ByteDance in the AI content generation space, a battleground where ByteDance currently holds an advantage in scale and investment. Streaming executives should watch whether Kuaishou successfully spins off Keling AI and if its direct-charging model can substantially diversify revenue beyond its core advertising and live-streaming businesses.
Read full article at eu.36kr.com
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