The AI video training side is indeed extremely expensive, with extremely high training costs,, but inference costs are already very low compared to traditional video production, and they are still declining with GPUs/dedicated chips and inference optimization. However, the difficulty lies in monetization and finding commercial scenarios that can be implemented.

ByteDance is one of the leaders in this field. It has upstream IP, midstream production, and downstream distribution and monetization, all of which can be completed within its ecosystem.
Upstream:
Fanqie Novel provides IP supply. The platform has 3 million regular authors, 700k contracted authors, and 1.8 million licensed works;
Midstream:
Short drama creators, production companies, and AI tools together form the production network. Tools such as Seedance 2.0 and the CapCut team's "Little Lark" short drama agent have been implemented: the production cost per episode can be reduced from the previous 50,000–100k RMB to about 5,000 RMB, and the production cycle is shortened by 70%.
Downstream:
Hongguo Short Drama and Hongguo Comic Drama undertake traffic and monetization.
Hongguo Short Drama's monthly active users have reached 304 million, accounting for about 90% of the independent short drama app market, with an average daily usage time of about 125 minutes; Hongguo Comic Drama reached 24 million MAU within four months of launch.
Data source: @FundaAI