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.
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.
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