Major Chinese technology and media companies, including Tencent, iQiyi, and TVB, are now integrating artificial intelligence into the creation of films and television series. This move signals a significant shift in the entertainment industry, with new initiatives aimed at producing AI-generated content for mainstream audiences.
Baidu-backed streaming service iQiyi recently announced a new project called the "AI theatre." This initiative, launched in partnership with an Oscar-winning director, aims to cultivate and distribute content made primarily with artificial intelligence tools. The development is part of a broader trend in China's tech sector to explore AI's creative potential.
Key Takeaways
- Chinese companies like Tencent, iQiyi, and TVB are actively using AI for film and drama production.
- iQiyi has launched an "AI theatre" initiative to support creators using artificial intelligence.
- The iQiyi project is a collaboration with Academy Award-winning cinematographer Peter Pau.
- Tencent has also started a competition for AI-generated short films, requiring at least 70% AI-created content.
- These initiatives indicate a growing industry focus on AI as a primary tool for content creation, not just for special effects.
iQiyi Launches AI-Powered Creative Initiative
The streaming platform iQiyi has taken a concrete step toward fostering AI-generated entertainment with the launch of its "AI theatre." The announcement was made in Shanghai, highlighting a collaboration with Peter Pau Tak-hei, a renowned Hong Kong cinematographer.
Pau is widely recognized for his work on the film Crouching Tiger, Hidden Dragon, for which he won an Academy Award for Best Cinematography in 2001. His involvement lends significant creative credibility to the new venture, bridging the gap between traditional filmmaking and emerging technology.
Background on iQiyi
iQiyi is one of China's largest online video platforms, often compared to Netflix. Backed by the technology giant Baidu, the company has invested heavily in original content and is now exploring AI to innovate its production pipeline and discover new forms of storytelling.
Structure of the AI Theatre Program
The program is designed as an incubator for creative talent working with AI. It will select 15 teams to participate in a seven-day intensive camp focused on content creation. During this period, teams will receive direct support to develop their projects.
Key benefits for the participants include:
- Production Subsidies: Financial support to help cover the costs of creating their AI-driven films or series.
- Technical Support: Access to the necessary AI tools and platforms required for production.
- Expert Mentorship: Ongoing guidance from Peter Pau, providing valuable industry and artistic insight.
The content produced through this initiative is scheduled for release on the iQiyi platform. The company has set a target for the first projects to debut as early as the first quarter of 2026. Successful projects will also benefit from promotional support and a profit-sharing model based on net revenue.
Timeline and Profit Sharing
The first batch of AI-generated content from iQiyi's program is expected in Q1 2026. The creators will be eligible to share in any net profits generated by their work, providing a direct financial incentive for innovation.
Industry Leaders See AI as a Transformative Force
The move by iQiyi is supported by a strong belief among its leadership that AI is on the verge of revolutionizing video content. Both the company's CEO and its high-profile collaborator have expressed optimism about the technology's potential.
"The moment when AI disrupts long-form and short-form video is imminent," stated Gong Yu, founder and CEO of iQiyi, during the launch event in Shanghai.
Peter Pau echoed this sentiment, emphasizing the creative possibilities that AI unlocks for visual media. He described the current developments as a fundamental change in how visual stories are told.
"[AI-generated content is] spearheading a visual revolution," Pau commented, highlighting the technology's capacity to create new aesthetic styles and production workflows.
Tencent and Others Join the AI Content Movement
iQiyi is not the only major player in China's technology and media landscape to embrace AI-generated content. Tencent Holdings, a dominant force in video gaming and social media, has also launched a program to encourage the use of AI in filmmaking.
Tencent's AI Short Film Competition
Last week, Tencent's video division introduced an "AI short film competition." The contest invites creators to submit films that are at least one minute long and have a significant portion of their content generated by artificial intelligence.
The competition rules specify that at least 70% of the content in each submitted film must be created using AI tools. This high threshold ensures that participants are genuinely exploring AI as a primary production method rather than just an auxiliary tool. The deadline for submissions is set for October 16.
A Broader Industry Trend
The initiatives from iQiyi and Tencent, along with interest from Hong Kong's Television Broadcasts (TVB), reflect a wider trend. September has been a notable month for Chinese tech companies announcing and launching projects related to AI video generation, suggesting a coordinated industry push to explore and normalize this new form of media production.
The Future of AI in Entertainment
The push by these influential companies suggests that AI will play an increasingly central role in the entertainment industry. While AI has been used for years in post-production for tasks like visual effects and color grading, these new programs focus on using it for generative creation—producing original scenes, characters, and even entire narratives.
This shift could have several major impacts:
- Lowering Barriers to Entry: AI tools could reduce the high costs associated with traditional film production, allowing more independent creators to produce high-quality content.
- New Creative Possibilities: Artists and directors may use AI to generate visuals and styles that are difficult or impossible to create with conventional methods.
- Accelerated Production: AI can potentially speed up animation, background creation, and other labor-intensive parts of the production process.
As these technologies mature, the line between human-created and AI-generated content is expected to blur. The programs launched by iQiyi and Tencent represent early but significant investments in what could become the next chapter of filmmaking and television production.
