Chinese Streaming Giant iQIYI Shifts Entirely to AI-Generated Content Within Five Years

China’s leading streaming platform, iQIYI, is accelerating its shift toward artificial intelligence, with plans to generate the majority of its content using AI within just five years, Bloomberg reports.

During iQIYI’s annual content showcase, CEO Gong Yu outlined a sweeping AI strategy that diverges sharply from the company’s origins as a Netflix-style service. The Beijing-based streamer intends to transform its platform into a social media destination dominated by AI-generated content, much of which will be produced using its proprietary AI model.

On Monday, iQIYI launched Nadou Pro, an all-in-one AI toolkit designed to streamline filmmaking from screenwriting to video generation. The company confirmed that Nadou Pro has already been used to produce films in internal tests. Beyond tools, iQIYI is set to release its first AI-generated film this summer, aiming for mainstream box office success rather than a niche experiment.

A redesigned version of the iQIYI app was also unveiled on Monday. Executives are seizing on the momentum following the unexpected shutdown of OpenAI’s Sora video generator last month, hoping to replicate its viral appeal.

“It’s once in a decade,” Gong told producers and directors at the showcase, per Bloomberg. “We have to take the tide as it comes.”

In the meantime, iQIYI will release 16 films produced with Nadou on its platform as a preview of its AI-driven future. The company is also incentivizing filmmakers by offering an additional 20% cut of advertising and membership revenue for those who use its AI tools.

Industry Disruption and Hollywood’s AI Debate

iQIYI’s AI push arrives amid growing unease in Hollywood over the technology’s potential to disrupt the entertainment industry. Recent advancements in video generation models—such as Google’s Veo 3 and ByteDance’s Seedance 2.0—have intensified concerns about job displacement and creative control.

While some industry insiders argue that AI is already deeply embedded in production pipelines, others warn of an inevitable “AI takeover.” However, skepticism persists, with many viral AI-generated clips later revealed to be misleadingly edited or staged. Questions also linger about the economic feasibility of AI video generation. OpenAI’s Sora, which iQIYI seeks to rival, reportedly lost over $1 million per day before its shutdown.

Challenges in China’s Box Office Recovery

iQIYI’s AI ambitions coincide with a challenging year for China’s film industry. Despite the blockbuster success of “Ne Zha 2”, which debuted on the first day of the 2025 Chinese New Year holiday, domestic box office sales during the holiday week plunged by nearly 40% compared to the previous year. Reports indicate this was the lowest figure since 2018.

iQIYI’s revenue has also taken a hit, with estimates suggesting a 13% decline in earnings.