For many Americans, the world of short-form video content might seem largely synonymous with one name: TikTok. The app, birthed from the tech powerhouse ByteDance, has undeniably conquered global screens, even in its home country of China. You’d be forgiven for thinking TikTok, or its Chinese counterpart Douyin (抖音), reigns supreme as the undisputed king of bite-sized videos in the Middle Kingdom. After all, with over 400 million daily active users in China alone, Douyin’s dominance is hard to ignore.
But hold up a second, folks. Just like how the American media landscape extends far beyond a single social media platform, the Chinese digital sphere is just as, if not more, diverse. Enter Kuaishou (快手), sometimes also known as Kwai in its international iterations. This isn’t some upstart pretender to the throne; Kuaishou is a serious player, a short video application that, according to PandaYoo, boasted over 300 million daily active users as of 2020 – and that number has only grown since.
While TikTok often captures the Gen Z spotlight and dominates global headlines, Kuaishou has quietly carved out its own unique empire within China, particularly resonating with users in third-tier cities and rural areas. Think of it as the digital embodiment of “Main Street” China, versus the “Fifth Avenue” vibe you might associate with the glossier image often projected by Douyin.
In fact, for millions in China’s heartland, Kuaishou isn’t just another app; it’s a vital part of their daily lives, sometimes even eclipsing WeChat, the ubiquitous “everything app” often dubbed the Chinese version of Facebook, in terms of daily engagement in certain communities. Imagine villages where Kuaishou, not WeChat, becomes the go-to for local news, community updates, and even just casual chit-chat. Mind-blowing, right?
And if you’ve ever stumbled upon viral memes like “Xue Hua Piao Piao” (the “Snow Flower飘飘” meme) or the “Egg Man” videos online, you might be surprised to learn they originated not from TikTok’s global phenomenon, but from the depths of Kuaishou’s vibrant ecosystem.
The secret sauce to Kuaishou’s success isn’t chasing the same trends that fuel TikTok’s popularity among Generation Z. Instead, it tapped into a different vein, recognizing that for a significant portion of the Chinese population, particularly in rural markets, watching and creating videos is far more accessible and appealing than typing and reading. In a country where digital literacy varies widely, Kuaishou became a genuine gateway to the internet for many who might have otherwise been left behind.
This article will delve into the fascinating world of Kuaishou, exploring how it has not only coexisted with, but in many ways thrived alongside, the global juggernaut that is TikTok. We’ll unpack its unique product logic, understand its distinct user base, and analyze the strategies that have allowed it to become a cultural and commercial force in its own right. And crucially, we’ll examine how Kuaishou is now betting big on Artificial Intelligence, not just as a feature, but as the very foundation for its future growth and evolution in an increasingly competitive digital landscape.
From Tool to Community: Kuaishou’s “Traffic Inclusive” Philosophy
To truly understand Kuaishou, you have to rewind a bit. Its origins are humble, starting life in 2011 as “GIF Kwai,” a simple tool for creating and sharing animated GIFs. In 2013, a pivotal shift occurred: GIF Kwai transformed into a short video community. This wasn’t just a cosmetic change; it represented a fundamental philosophical shift that would define Kuaishou’s trajectory.
While many tech companies, particularly in the internet space, tend to focus on the urban elite, the early adopters in first-tier cities who drive trends and consumption, Kuaishou took a different path. It recognized the immense, often overlooked, potential of China’s vast rural population. As the Tencent Research Institute, the original source of some of our insights, astutely pointed out, stories of technological progress often originate in urban centers, but little attention is paid to whether these technologies truly adapt to and serve the rural field.
China, a nation with hundreds of millions living in rural areas, presents a massive market often missed by the mainstream internet discourse. Kuaishou, however, decided to shine a spotlight on this demographic. Suddenly, the internet was populated with videos of “muddy children dancing in the fields,” centenarians showcasing calligraphy skills, and young men cooking elaborate meals outdoors. These weren’t the polished, aspirational lifestyles often seen on other platforms; they were raw, authentic glimpses into the daily lives of ordinary Chinese people, many of whom resided “outside the five ring road” – a Beijing slang term referring to areas beyond the city’s central districts, often used to denote less affluent or less urbanized areas.
As Zhang Fei, an investor in Kuaishou, candidly put it, these videos could be “fresh, amazing, and sometimes even hard to accept.” But that, in a way, was the point. Kuaishou embraced the “fragmented” nature of the real world, offering a platform where diverse voices and lifestyles could find an audience.
This ethos crystallized into what Kuaishou termed its “traffic inclusive” strategy. It’s a philosophy centered on giving fair exposure opportunities to every content producer, encouraging a diverse tapestry of content creation across the platform. Unlike algorithms that heavily favor “hot content recommendation” – where a select few, often platform gatekeepers or algorithmically determined trends, dictate what users see – Kuaishou aimed for a more egalitarian approach.
Think of it as the short video equivalent of “WeChat Moments,” but on steroids. Yes, you can still see trending content, but you’re also exposed to updates from your immediate community, recommendations from friends, and content from creators who aren’t necessarily mega-influencers. This “traffic inclusive” approach, in essence, democratizes attention, ensuring that not just the celebrity creators, but also the everyday users, can be “discovered, followed, and pushed by the platform.”
This isn’t just some feel-good marketing slogan; “traffic inclusive” is deeply embedded in Kuaishou’s product design, algorithm logic, and operational philosophy. It’s a deliberate choice to explore an alternative model of traffic distribution, one that prioritizes diversity and inclusivity over solely maximizing efficiency through concentrated “hot content.”
The “Gini Coefficient” of Attention: Leveling the Playing Field
When a platform like Kuaishou reaches a massive scale with user-generated content (UGC), it faces a fundamental choice: does it prioritize the viewer’s desire for polished, easily digestible “candy” – curated, high-production value content designed to maximize engagement? Or does it focus on the producers, ensuring that every niche, every voice, even the mundane moments of everyday life, gets a chance to be seen and appreciated, thereby encouraging continued content creation?
Most video apps, particularly those chasing hyper-growth and mainstream appeal, tend to lean towards the former – the “candy” approach. Kuaishou, however, doubled down on the latter. It wasn’t just about entertaining users; it was about empowering “recorders” – individuals willing to document and share their lives. In Kuaishou’s vision, these “recorders,” the ordinary people sharing their authentic experiences, held even greater value than “internet celebrities” or “professional creators.”
This philosophy is concretely manifested in Kuaishou’s product design, most notably through its “Gini coefficient” mechanism for traffic allocation. Drawing inspiration from economics, where the Gini coefficient measures wealth distribution, Kuaishou applies this concept to the distribution of attention.
In essence, Kuaishou puts a cap on the amount of traffic that can be concentrated on top creators. When a short video reaches a certain threshold of popularity, its exposure is automatically reduced, making way for new, potentially high-quality content to gain visibility. For creators with millions of followers – the “head creators” – Kuaishou actively implements “traffic suppression measures.” Videos from these top-tier creators that achieve over 500,000 views are capped at 30% of the total video plays on the platform, with the remaining 70% of traffic deliberately channeled towards ordinary creators.
The result? A more level playing field where even mid-tier creators can gain significant traction and build a loyal following. According to Kuaishou’s own “Creator Business Value Report” from 2019, only a tiny fraction (0.14%) of creators had over 10 million fans, and a similarly small percentage (0.32%) had between 5 and 10 million fans. This suggests a more decentralized distribution of influence compared to platforms where a handful of mega-stars dominate the attention economy.
“WeChat Moments in the County”: Localizing the Connection
While the “Gini coefficient” strategy addresses the quantity of traffic distribution – who gets more, who gets less – Kuaishou’s “Local” function tackles the quality of traffic, ensuring content finds its most relevant audience.
A vast amount of content on Kuaishou, particularly from smaller and medium-sized creators, captures the nuances of daily life. This content, often lacking the polish of professional TV shows, isn’t designed for mass appeal in the traditional sense. So, who does it resonate with? The answer, according to Kuaishou, is viewers who share similar backgrounds, cultural contexts, and entertainment preferences – in essence, communities. And in lower-tier cities and rural areas, “geographical relationship” is the most potent way to establish this shared identity.
This is where Kuaishou’s “Local” page comes into play. It’s essentially short video social networking anchored by geographical location. Unlike TikTok, where the “For You” page (FYP) algorithm dominates, “Local” has always been a crucial traffic driver for Kuaishou, playing an indispensable role in its “cold start” phase.
“Cold start,” in internet parlance, refers to the initial boost a piece of content or a new creator receives to gain initial traction. On Kuaishou, this often manifests as a guaranteed 200-300 views for every uploaded video, even without any existing followers. And almost all of this initial exposure comes from local channels. In essence, Kuaishou’s “Local” feature acts as a hyper-localized discovery engine, connecting creators with viewers in their immediate vicinity. Think of it as a digital version of your neighborhood bulletin board, but with video.
This “Local” page has become a vital traffic entrance, ranking alongside the “Followed” and “Discovery” feeds in importance. But unlike those more generic feeds, “Local” fosters a sense of “county moments” and an “old fellow chain” – creating strong social bonds rooted in shared geography. It transforms online connections into offline potential, with strong implications for local commerce and community building.
Kuaishou’s AI Gambit: Generating a “New Business”?
Fast forward to 2025, and the narrative around Kuaishou has shifted dramatically. While its “traffic inclusive” philosophy and community-centric approach remain core to its identity, a new element has taken center stage: Artificial Intelligence. According to insights from the 2025 Magnetic Conference, Kuaishou is making a bold bet, positioning AI not just as a tool to enhance existing features, but as a fundamental force capable of “reshaping the business operating landscape.” This isn’t just marketing hype; Kuaishou is actively deploying AI across its ecosystem, from content creation to advertising, and even e-commerce.
At the heart of Kuaishou’s AI strategy lies “Keling AI” (可灵AI), a video generation model that has become a flagship product and a symbol of Kuaishou’s AI ambitions. Launched in the fourth quarter of 2024, Keling AI is designed to empower users to create high-quality video content with unprecedented ease.
As reports indicate, Kuaishou CEO Cheng Yixiao (程一笑) stated, “Keling AI is currently the video generation AI application with the largest commercialization scale in China.” By February 2025, just a few months after its commercial launch, Keling AI had already generated over 100 million RMB in revenue, serving over 6 million users, with monthly revenue exceeding 10 million RMB. Kuaishou confidently projects significant revenue growth for Keling AI in the coming year.
This rapid commercial success is attributed to several factors. First, Kuaishou identified “text-to-video” generation as a “small but beautiful” niche within the broader AI landscape, aligning perfectly with its core video content platform. Second, Kuaishou prioritized speed to market, adopting a “product first, optimize later” approach, allowing Keling AI to gain a first-mover advantage. Third, Keling AI is remarkably affordable, significantly undercutting competitors in terms of video generation costs.
But Keling AI is more than just a revenue generator; it’s a strategic asset designed to fundamentally transform Kuaishou’s entire ecosystem. Kuaishou is leveraging AI across three key areas:
- Cost Reduction: AI is being used to streamline operations and reduce costs across various functions. For instance, in content recommendation, AI algorithms are reducing the need for manual content tagging and moderation, improving efficiency and accuracy. AI-powered customer service is also enhancing user support while reducing operational costs.
- Empowerment: AI is empowering creators and businesses on the platform. In e-commerce, AI is optimizing marketing services, enhancing ad targeting, and improving conversion rates. For creators, AI-powered tools are simplifying content creation, reducing production costs by as much as 60-70%, and unlocking new creative possibilities. AIGC (AI-Generated Content) marketing materials on Kuaishou are already seeing daily consumption exceeding 30 million RMB.
- Traffic Generation: Ultimately, AI is seen as a driver of user growth and engagement. By lowering the barrier to content creation, Kuaishou aims to revitalize its UGC ecosystem. AI-powered algorithms are designed to improve content distribution, enhance user retention, and boost engagement metrics. AI-driven virtual avatars and AI-powered live streaming tools are being deployed to further enhance user experience and drive platform activity.
Kuaishou is even venturing into AI-generated short dramas, launching “Mountain and Sea Wonders: Breaking Waves” (山海奇镜之披荆斩浪), arguably the first of its kind in China. This demonstrates the potential of AI to revolutionize content creation and open up entirely new content formats.
The AI Arms Race: Kuaishou vs. the Giants
Kuaishou’s aggressive push into AI is not happening in a vacuum. The entire Chinese internet landscape is in the midst of an AI arms race, with tech giants like Alibaba, Tencent, and, of course, ByteDance (TikTok/Douyin’s parent company) all vying for dominance in this transformative technology.
ByteDance, in particular, looms large as Kuaishou’s primary competitor. Both companies are deeply entrenched in the short video market and are now aggressively pursuing AI as the next frontier of growth. ByteDance has its own AI video generation tools, most notably “Ji Meng AI” (即梦AI), which is rapidly gaining traction. QuestMobile data shows Ji Meng AI experiencing a near three-fold increase in weekly active users in just a month and a half, reaching nearly 2 million users by February 2025.
The competition is heating up in the AI-generated short drama space as well. ByteDance, through its Ji Meng AI, has launched an “AIGC Short Drama Joint Recruitment Program” in collaboration with Douyin, offering significant investment and traffic support to short drama creators utilizing AI. This move directly challenges Kuaishou’s ambitions in the burgeoning AI short drama market.
However, Kuaishou believes its “vertical domain model cluster” approach to AI, focusing on specialized models tailored for specific commercial applications, gives it a competitive edge over rivals pursuing more general-purpose AI models. Kuaishou’s AI ecosystem comprises models like “KwaiYi” (快意) for language, “KeTu” (可图) for images, and “KeLing” for video, working in concert with decision-making models for marketing and advertising. This multi-modal, domain-specific AI strategy is designed to create a closed-loop commercial system, from content production to demand insights and transaction decisions.
Furthermore, Kuaishou emphasizes its “ecological advantage” – a vast user base, a diverse content ecosystem, and a thriving commercial ecosystem encompassing creators, merchants, advertisers, and service providers. This rich ecosystem provides a continuous feedback loop, fueling AI development with data and driving business growth in a virtuous cycle.
The Road Ahead: Can AI Revive Kuaishou’s Growth Story?
Despite the promising strides in AI, Kuaishou still faces significant challenges. While its 2024 financial results showed profitability and revenue growth, the pace of growth is undeniably slowing. Revenue growth in Q4 2024 dipped to single digits for the first time since its IPO, and user growth is showing signs of fatigue. The live streaming business, once a core revenue driver, is in decline, and e-commerce growth, while still robust, is also decelerating.
Investors, while acknowledging Kuaishou’s AI potential, remain cautiously optimistic. The stock price reaction to the 2024 earnings report was muted, reflecting concerns about the slowing growth in core businesses and the uncertain trajectory of its AI investments.
The question is whether Kuaishou’s AI strategy, spearheaded by Keling AI, can truly revive its growth story and propel it to new heights. The answer hinges on several factors:
- Commercialization of AI: Keling AI’s early revenue success is encouraging, but it needs to scale significantly to become a substantial revenue contributor. Kuaishou needs to effectively monetize its AI capabilities across various business segments, from advertising to e-commerce and beyond.
- User Adoption of AI Tools: The success of Kuaishou’s AI strategy depends on user adoption of AI-powered tools, both for content creation and consumption. Kuaishou needs to demonstrate the value proposition of its AI tools to creators and users alike, ensuring they are user-friendly and genuinely enhance the platform experience.
- Competitive Landscape: The AI arena is fiercely competitive. Kuaishou must outmaneuver rivals like ByteDance and other tech giants in the AI race. This requires continuous innovation, strategic partnerships, and effective execution of its AI roadmap.
- Sustaining “Traffic Inclusivity”: As Kuaishou embraces AI, it must ensure that its core value of “traffic inclusivity” is not compromised. AI algorithms, if not carefully designed and implemented, can exacerbate existing inequalities and further concentrate attention on top creators. Kuaishou needs to find a balance between leveraging AI for efficiency and growth while preserving its community-centric ethos and ensuring fair opportunities for all creators.
Kuaishou’s journey into AI is a high-stakes gamble, but also a necessary evolution in a rapidly changing digital world. As the internet shifts from a “traffic war” to a “technology war,” Kuaishou’s bet on AI is not just about survival; it’s about seizing the opportunity to redefine the future of short video and social media. Whether Kuaishou can truly “generate a new business” powered by AI remains to be seen, but one thing is clear: the race is on, and Kuaishou is determined to be a frontrunner in the AI-driven future of content and commerce.
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