Kai-Fu Lee’s AI startup, 01.AI, is undergoing significant restructuring. Plans include the separation of several business units, such as the digital human business, and an AI video editing tool called SparkView.

In response to inquiries, 01.AI claimed it generated over 100 million yuan (around US$13.7 million) in revenue in 2024 and anticipates continued growth. The company also plans to adapt to market trends by reallocating resources, supporting independent financing for viable projects, and discontinuing less successful initiatives. 01.AI further stated that its ongoing restructuring efforts aim to ensure it remains adaptable in the evolving AI sector.

This restructuring reflects 01.AI’s strategy of favoring smaller, more efficient AI models over making larger models.

In mid-December 2024, 01.AI disbanded its pre-training algorithm and infrastructure teams. Many of the employees from these teams have since been hired by Alibaba.

Recent 01.AI developments