Tiangong AI's business ARR has surpassed $800 million, targeting to become China's first non-BAT AI company with a $1 billion ARR, with its AI short-drama platform contributing over $700 million.
Kunlun Wanwei announced on July 2 that its Tiangong AI achieved a historic milestone in the second quarter of 2026: the annual recurring revenue (ARR) for its AI Native model and product business has surpassed the $800 million mark. Among this, the AI short-drama platform business exceeded $700 million in ARR, while the AI tools business surpassed $100 million in ARR. Additionally, DramaWave, the short-drama platform under Tiangong AI, has officially completed its AI-native transformation. Currently, over 80% of newly published content on the platform is AI-generated, marking Tiangong AI's leadership in ushering the global short-drama industry into the era of AI-native content.
Over the past two years, the global AI industry has accumulated more than $100 billion in total financing, with large model capabilities achieving leapfrog development. However, compared to technological breakthroughs, large-scale commercialization has always been the biggest challenge facing the entire industry. Whether in overseas markets or in China, the vast majority of AI companies remain in the stages of model R&D, user growth, or business model validation, heavily reliant on financing support. Companies that have achieved revenue on the scale of hundreds of millions of dollars are extremely rare, and AI Native companies approaching the $1 billion ARR threshold are even scarcer.
Against this backdrop, Tiangong AI has taken the lead in completing the full closed loop from model capabilities and product matrix to commercial revenue, becoming a representative case of the global AI industry transitioning from a "technology race" to a "commercial race":
- Video generation large model SkyReels, music generation large model Mureka, and game world model MatrixGame have each topped international authoritative rankings, placing Tiangong AI in the global first tier across multiple core tracks;
- It has built a complete product matrix covering content production, creative tools, entertainment platforms, and game world construction, establishing a real and continuously growing revenue system through products such as DramaWave, Skywork, and Mureka;
- Core business has maintained double-digit QoQ growth for multiple consecutive quarters, making Tiangong AI one of the few AI companies worldwide to simultaneously achieve leadership in models, products, and revenue.
Zhou Yahui, founder and CEO of Tiangong AI, stated:
"AI is moving from a technological revolution into an industrial revolution phase, from laboratories to real users, from models to revenue. We believe that every internet platform, every content industry, and every software product will be redefined by AI. Going all in on AI may not guarantee success, but not going all in on AI will certainly lead to being left behind by the times."
Since Zhou Yahui took over as CEO of Tiangong AI in the fourth quarter of 2025, the ARR of the AI Native business has surpassed $800 million and is steadily advancing toward $1 billion. Tiangong AI has become one of the fastest-moving companies in global AI commercialization and is poised to achieve the first milestone of "$1 billion ARR outside of BAT" in the history of China's AI industry.