BEIJING — An innovative step in AI technology is being driven by PixVerse, an Alibaba-backed startup focused on real-time, interactive video creation. PixVerse on Tuesday launched a cutting-edge AI tool that allows users to actively influence a video's progression during its creation. Users, akin to movie directors, can instruct characters to exhibit emotions or actions instantaneously as the video plays. Co-founder Jaden Xie told CNBC in a translated Chinese interview that this technology heralds new business models. Imagine users guiding the storyline of a micro-drama or playing an 'infinite' video game unconstrained by pre-designed plots.
PixVerse, founded in 2023, secured over $60 million last fall in a funding round led by Alibaba, with other key investors such as Antler. Xie mentioned the imminent completion of another funding round, keeping the specifics under wraps, but noted that the majority of investors are international. This latest AI innovation by PixVerse underscores how Chinese developers are vying for a competitive edge in the AI-driven video tools market.
Aside from Israeli startup Lightricks, China's dominance is evident with the top eight AI video generation models tracked by AI benchmarking firm Artificial Analysis. These Chinese competitors often provide faster video generation and significantly lower costs compared to OpenAI's premium model, Sora 2 Pro, which gained attention nearly two years ago with its text-to-video capabilities but became available to the public in December 2024. By this time, several Chinese solutions had already made their mark globally. Market analyst Wei Sun from Counterpoint points out that while Sora represents the pinnacle of video quality, its high generation time and API costs limit its accessibility. Meanwhile, Chinese innovators are transforming video generation into a scalable, cost-effective production process. In a recent development, Beijing-based Shengshu announced their TurboDiffusion video framework, a collaboration with Tsinghua University, capable of producing videos 100 to 200 times faster without notable quality loss.
Social media ambitions
PixVerse's groundbreaking AI tool minimizes wait times and integrates seamlessly with the company's social media-style platform, which has grown to over 16 million monthly active users as of October. The real-time generation feature enhances content interaction by eliminating delays between creation and distribution. Xie plans to double the user base to 200 million by mid-year and also increase their team size significantly. PixVerse caters mainly to international users via web and mobile app interfaces. Alyssa Lee of DataHub, sharing insights as a former Bessemer Venture Partners VP, commented on the simplicity of U.S.-based AI tools compared to their Chinese counterparts. She notes that specialized AI video tools offer clearer paths to monetization and highlighted the challenges faced by traditional software giants like Adobe. Once a staple in video and design software, Adobe's market position is challenged by this new wave of creative AI tools. As of October, PixVerse estimates $40 million in annual recurring revenue, standing out in the revenue-generating AI video scene.
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