Kuaishou announced that it will further increase its investment in the artificial intelligence (AI) field to address concerns about the monetization capabilities of its latest AI tools. At the earnings conference call on May 27, Chief Financial Officer Jin Bing stated that as the company's revenue continues to grow, Kuaishou’s overall losses from Ke Ling AI will gradually narrow, and the amortization of fixed costs such as training and labor will help improve financial performance.

Jin Bing revealed that Kuaishou's AI expenditure is expected to increase year-over-year, mainly to attract and retain top AI talent and enhance the team's technical capabilities. He emphasized that these investments would have a minimal impact on the company's overall profitability. Nevertheless, he also mentioned that this series of AI investments is expected to cause the group's overall profit margin to decline by approximately 1% to 2% this year.

Kuaishou

According to the documents submitted to the exchange, Ke Ling AI's revenue in the first quarter exceeded RMB 150 million, while the company's total revenue for the same period grew by 11% year-over-year, reaching RMB 32.6 billion. This figure exceeded analysts' expectations. Despite Kuaishou's strong performance in revenue, Bloomberg Intelligence analysts Robert Lea and Jasmine Lyu noted that Kuaishou's AI investments are expected to continue to put pressure on profit growth until 2025, and its monetization capabilities still face challenges.

These analysts pointed out that although Kuaishou may further improve profitability this year, potential risk factors include economic environment pressures, increased research and development spending, and intense market competition. Therefore, Kuaishou will need to find a balance between maintaining investments and achieving profitability in future business development.

Key Points:

🌟 Kuaishou plans to increase AI investments to enhance the monetization capabilities of its tools.  

💰 Ke Ling AI’s first-quarter revenue exceeded RMB 150 million, with total revenue growing by 11%.  

📉 AI investments are expected to lead to a decline in overall profit margins by 1% to 2%.