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Chinese selfie apps giant Meitu sees profits triple in 2023 on back of new generative AI-powered tools
- Hong Kong -listed Meitu estimated its net profit last year to be between US$46.36 million and US$51.98 million, up more than 200 per cent from 2022
- The surge in profits was attributed to user growth from its new generative AI-based image and productivity tools
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Chinese selfie apps giant Meitu said new image-and-video-editing tools powered by artificial intelligence (AI) helped the company triple its profits last year, in stark contrast to how many other firms struggle to monetise the technology through their own generative AI initiatives.
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Citing its preliminary assessment of unaudited accounts, Hong Kong-listed Meitu estimated net profit last year to be between 330 million yuan and 370 million yuan (US$46.36 million and US$51.98 million), up more than 200 per cent from 2022’s net profit of 111 million yuan, according to the company’s statement last week.
The surge in profits was attributed to its generative AI-based image and productivity tools that include Action, which enables users to produce narrated videos, and X-Design, a platform that allows users to create graphics design for posters of products and services.
Both of those tools “exceeded expectations” in terms of user growth and subscription conversion, according to Meitu.
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Generative AI refers to algorithms, such as those in ChatGPT and similar services, that can be used to create new content, including audio, code, images, text, simulations and videos.
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Meitu’s success in monetising its generative AI tools comes as major tech companies in the United States, China and elsewhere are struggling to turn a profit from their own initiatives, while continuing to make huge capital outlays in this market segment.
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