On the same day that global AI video leader Sora announced its exit, the domestic video large model demonstrated a completely different aggressive stance.

On March 25, Kuaishou released its Q4 2025 and annual financial report. During the earnings call, Kuaishou CEO Cheng Yixiao revealed the impressive growth rate of its video generation model Kuaishou AI, and made a "military pledge": the team is confident in achieving more than 100% year-over-year growth in Kuaishou AI revenue this year.

Outstanding Performance: Earning $20 million in a Single Month

While the industry was still questioning the commercialization capabilities of video large models, Kuaishou AI has already delivered tangible results:

Revenue Surge: In the fourth quarter of last year, Kuaishou AI contributed revenue of 340 million yuan. Its revenue in December alone exceeded 20 million US dollars.

Economies of Scale: As of January this year, its annual recurring revenue (ARR) has exceeded 300 million US dollars.

User Engagement: The global user base has surpassed 60 million, with over 600 million videos generated in total.

Increased Computing Power: 2.6 Billion in Capital Expenditure "Not Short of Money"

To avoid repeating Sora's fate due to cost pressure, Kuaishou is preparing to invest more in infrastructure.

Kuaishou CFO Jin Bing stated that the group's overall capital expenditure (Capex) for 2026 is expected to reach approximately 2.6 billion yuan, an increase of 1.1 billion yuan from 2025. This substantial investment will mainly be directed towards computing power construction, fundamental model development, and large-scale data storage and processing for the Kuaishou Large Model.

Avoiding the "Black Hole": Commercialization Speeds Up to Outpace Cost Growth

Cheng Yixiao emphasized during the meeting that although video generation models are complex and consume a lot of computing power, they have significant openness in input and output forms, offering great innovation potential.

Lowering Barriers: Compared to Sora's high iteration costs, Kuaishou AI takes a route of lowering the creative barriers and rapidly penetrating multiple scenarios.

Increasing Speed: Kuaishou is accelerating commercial monetization to ensure that revenue growth exceeds cost growth, effectively avoiding falling into a "cost black hole" similar to Sora's.

Financial Foundation: Net Profit Surpasses 20 Billion

The basis for Kuaishou's bold move into the AI field is its increasingly stable financial performance.

In 2025, Kuaishou achieved a total revenue of 142.8 billion yuan, with an adjusted net profit of 20.6 billion yuan, representing a 16.5% year-over-year increase. High-margin e-commerce and AI businesses continue to expand, providing ample resources for technology R&D.

At the crossroads of the AI video race, Kuaishou