Kunlun Tech, a China-based internet company, said on July 2 that annual recurring revenue (ARR) at Tiangong AI’s AI-native model and product business topped US$800 million in the second quarter of 2026.

Its AI short drama platform business contributed more than US$700 million, while its AI tools business added over US$100 million.

Tiangong AI started as an AI search product launched in August 2023.

DramaWave, Tiangong AI’s short drama platform for overseas markets, launched in September 2023.

By the end of March 2025, DramaWave had more than 10 million monthly active users.

By the end of April 2025, it had reached 53 million cumulative downloads.

That compares with about US$120 million in ARR for DramaWave at the end of March 2025.

Kunlun’s short drama platforms generated 168 million yuan (US$24.7 million) in 2024, or 2.96% of the company’s 5.7 billion yuan (US$834 million) revenue.

Sensor Tower said DramaWave ranked second worldwide by monthly active users among short drama apps in April 2025, behind DramaBox.

ReelShort and DramaBox led the market in in-app revenue.

Kunlun said DramaWave now generates more than 80% of its newly released content with AI.

In China, rules that took effect on September 1, 2025 require clear labels and metadata tags for AI-generated video on covered online services.

🔗 Source: Security Times