Competitive Landscape<\/h2>\n
Except for Israeli startup Lightricks, the top eight AI video generation models tracked by AI benchmarking firm Artificial Analysis are Chinese companies. Many offer faster generation speeds and far lower usage fees than OpenAI’s advanced, premium AI video model, Sora 2 Pro. OpenAI’s Sora first drew global attention nearly two years ago when it showed off a new text-to-video generation model, but it was not publicly available until December 2024.<\/p>\n
By then, several Chinese teams had already released competing tools to users globally. “Sora still defines the quality ceiling in video generation, but it is constrained by generation time and API cost,” said Wei Sun, a principal analyst at market research firm Counterpoint, referring to the way users are charged for access to use AI models.<\/p>\n
Social Media Ambitions<\/h2>\n
PixVerse’s latest AI tool has removed most of the waiting time \u2014 and aims to be more than just a special effect. Its tools are embedded within the company’s social media-style sharing platform, which surpassed 16 million monthly active users in October. Real-time video generation eliminates the gap between content creation and distribution, Xie said, reshaping how users interact with AI-generated content.<\/p>\n
Xie aims to reach 200 million registered users in the first half of this year, up from 100 million in August, and roughly double the team to nearly 200 employees by year’s end. PixVerse primarily serves users outside China through a web-browser interface and smartphone app.<\/p>\n
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Revenue and Growth<\/h2>\n
PixVerse estimated annual recurring revenue of $40 million in October. It’s not the only one generating revenue. Kling, an AI video tool developed by TikTok rival Kuaishou, posted nearly $100 million in revenue in the first three quarters of 2025, based on CNBC calculations from public disclosures.<\/p>\n
For now, Xie said that PixVerse is prioritizing technology development over commercialization and claimed the company has sufficient funding to operate for a decade. Addressing concerns about low-quality AI-generated content, often referred to as “slop,” Xie compared the current stage of development to the early years of computer graphics, arguing that quality improves as technology matures.<\/p>\n