In the rapidly evolving landscape of artificial intelligence, one of the most iconic figures in Hong Kong’s cinema, Stephen Chow, has taken a significant step toward integrating AI into the entertainment sector. His company, Bigo Group, after facing years of financial struggles, is embarking on a partnership with a major A-share gaming company. This collaboration aims to form a joint venture focused on leveraging generative artificial intelligence in gaming and film.
On the evening of February 13, Bigo Group announced a memorandum of investment cooperation with Hangzhou Kaixing Network Technology Co., a subsidiary of Kaicheng Network, marking a pivotal move in the company's strategy to rejuvenate its business model. The agreement outlines plans to create a new entity designed to develop AI-driven gaming solutions. Bigo Group will hold a 15% stake in the new venture, while Kaixing Network will retain 85% ownership.
The primary goal of this joint venture is to harness the capabilities of large language models (LLMs) and AI engines. These technologies are expected to facilitate the commercialization of AI applications across various segments, including gaming, film, and a broader spectrum of entertainment. The memorandum emphasizes that the newly established entity will offer technical support and services aligned with generative AI content for films and games, leveraging existing intellectual properties that Bigo Group possesses.
Following the formation of this partnership, management within the new joint venture is required to sign employment contracts for a minimum of three years. Interestingly, Bigo Group will also retain the exclusive right to promote the joint venture’s overseas gaming initiatives, indicating a strategic focus on international markets.
Bigo Group's board of directors expressed that this collaboration signals a new chapter, as it will allow the company to tap into the extensive experience and resources offered by Kaixing Network. The board strongly believes that utilizing generative AI technology will enhance the diversity of content produced within the realm of film and entertainment, aligning with the long-term interests of both the company and its shareholders.
However, the backdrop to this optimistic venture is a history of consecutive annual losses for Bigo Group, which traces its roots back to Deca International. Originally engaged in property-related sectors, the company made a significant pivot in June 2009 with a purchase aimed at entering cinema investments. Stephen Chow acquired a stakes in the firm, becoming a key figure in its strategic direction as executive director.
Over the years, Bigo Group has transitioned to focus on cinema investment and management, film production, licensing, and the creation of interactive content. It holds the intellectual property rights for notable works, including The King of Comedy and its sequel, The New King of Comedy. Despite its rich history and Chow’s illustrious career, recent financial statements reveal a concerning trend. Between the fiscal years of 2020 and 2024, Bigo Group recorded revenues dramatically fluctuating from approximately HKD 22.8 million to HKD 7.8 million, with net losses deepening each year.
In light of these financial challenges, Bigo Group had previously entered into a memorandum of understanding with iQIYI and Zhouling Cultural Media, initiating potential collaborations in producing original films, anime, and reality shows. This ambitious plan aimed to integrate Chow's talents either as an actor, director, or executive producer for the projects while positioning iQIYI as the distributor and primary financier.
As for Kaixing Network, it has emerged as a significant player in the gaming industry, steadily increasing its profits from CNY 178 million in 2020 to CNY 1.4 billion by 2024. This remarkable growth trajectory underscores the gaming company's strategic decisions and its potential profile as a robust partner for Bigo Group’s new venture.
Following these developments, Kaixing Network publicly announced the partnership through its official social media channels, officially confirming the memorandum of understanding made with Bigo Group's consulting subsidiary, Huichi Investment. The partnership will specifically channel efforts into their “Xingyi” large model application, associated with AI game engines.
This partnership highlights a trend toward the unification of AI technology and the gaming domain. The “Xingyi” application is aimed at revolutionizing game development by significantly enhancing operational efficiency—from animating game characters to crafting complex landscapes. Furthermore, the model is designed to automate and collaborate across various stages of game production, offering a forward-thinking approach to how games are conceived and brought to life.
Moreover, Kaixing Network has developed the "Dream Weaver" model, which showcases remarkable capabilities in processing and generating a variety of complex narratives, thus enhancing the gaming experience through richer storylines and engaging gameplay.
Both Bigo Group and Kaixing Network view this partnership as a major milestone in their journeys within the realm of artificial intelligence applications in AI-powered entertainment. As both companies gear up for this collaboration, they aim to maximize their strengths while navigating the dynamic and competitive landscape of AI-driven entertainment. With vast potential lying ahead, they are positioned to lead the charge into an AI-enhanced era of entertainment, one that could redefine audience engagement in the coming years.