# Short-video Industry

Kuaishou’s AI Gambit: Can the ‘Kling’ Model Rescue a Stagnating Short-Video Giant?

Kuaishou’s Q1 2026 earnings highlight a sharp 27% profit decline as the company aggressively spends on AI infrastructure, specifically its Kling video-generation model. Despite record user numbers, the platform faces stalling growth in live-streaming and fierce competition from Douyin and Bilibili, leading to rumors of a strategic spin-off for its AI division.