Kuaishou Technology Co. Ltd. posted a 70% surge in third-quarter operating profit, as its ramped-up investment in artificial intelligence began bearing fruit—especially in its core advertising segment, reports Caixin. The Beijing-based short-video company reported operating profit of RMB 5.3 billion ($746 million) for the three months ended in September, according to earnings released Wednesday. Revenue climbed 14.2% year-on-year to RMB 35.6 billion, while adjusted profit rose 26.3% to RMB 5 billion.
User engagement hit record highs. Daily active users on Kuaishou’s platforms grew 3% to 416.2 million, while monthly active users rose 2.4% to 731.1 million.
The results underscore how Kuaishou’s pivot to generative AI—particularly via its video-generation model Kling—is paying off. The company is investing heavily in computing infrastructure to keep up with global AI competitors like OpenAI’s Sora, an AI video-generation model unveiled earlier this year.