The ARR of Skywork AI's business has exceeded 800 million US dollars, moving towards becoming China's first AI company with an ARR of 1 billion US dollars that is not affiliated with BAT.

On July 2nd, Kunlun Tech announced that its TianGong AI achieved a historic breakthrough in the second quarter of 2026: the Annual Recurring Revenue (ARR) of its AI Native models and product business has exceeded the $800 million mark. Among them, the ARR of the AI short drama platform business exceeded $700 million, and the ARR of the AI tool business exceeded $100 million.

Meanwhile, DramaWave, the short drama platform under TianGong AI, officially completed its AI-native transformation. Currently, over 80% of the newly released content on the platform is generated by AI, marking that TianGong AI has led the global short drama industry into the era of AI-native content.

In the past two years, the global AI industry has raised over $100 billion in cumulative financing, and the capabilities of large models have achieved leapfrog development. However, compared with technological breakthroughs, large-scale commercialization has always been the biggest challenge facing the entire industry.

Whether in overseas or Chinese markets, the vast majority of AI companies are still in the stages of model R & D, user growth, or business model verification, and are highly dependent on financing support. Enterprises capable of achieving revenues in the hundreds of millions of dollars are already rare, and AI Native companies approaching the $1 billion ARR threshold are even more scarce.

Against this backdrop, TianGong AI has taken the lead in completing a complete closed-loop from model capabilities, product portfolios to business revenues, becoming a representative case for the global AI industry to move from a "technology competition" to a "business competition":

- The large video generation model SkyReels, the large music generation model Mureka, and the game world model MatrixGame have successively topped international authoritative lists, ranking among the world's first echelon in multiple core tracks;

- It has formed a complete product portfolio covering content production, creative tools, entertainment platforms, and game world construction, and established a real and continuously growing revenue system through products such as DramaWave, Skywork, and Mureka;

- Its core business has maintained double-digit QoQ growth for multiple consecutive quarters, making it one of the few AI enterprises globally that have achieved leadership in models, products, and revenues simultaneously.

Mr. Zhou Yahui, the founder and CEO of TianGong AI, said:

"AI is entering the stage of an industrial revolution from a technological revolution, moving from the laboratory to real users and from models to revenues. We believe that in the future, every Internet platform, every content industry, and every software product will be redefined by AI. Going all-in on AI doesn't guarantee success, but not going all-in on AI will definitely lead to being left behind by the times."

Since Mr. Zhou Yahui took over as the CEO of TianGong AI in the fourth quarter of 2025, the ARR of the AI Native business has exceeded $800 million and is continuously approaching the $1 billion mark. TianGong AI has become one of the fastest-growing enterprises in the global AI commercialization process and is expected to be the first to achieve the milestone of "a $1 billion ARR outside of BAT" in the history of China's AI industry.