Meitu’s Profit Soars with AI Pivot

In an impressive showcase of resilience and innovation, Meitu, China’s leading developer of selfie enhancement applications, has announced a staggering 233% surge in net profits for the year 2023, reaching 368.3 million yuan (approximately $51.3 million). This financial triumph is attributed to the company’s strategic pivot towards artificial intelligence (AI), a move that has evidently paid off with nearly 30% growth in revenue compared to the previous year.

Meitu’s journey into the realm of AI has been marked by significant milestones, including the development of X-Design, a business-facing graphics design platform powered by AI. This platform alone generated over 100 million yuan in revenue in 2023, marking an astonishing increase of nearly 230% from the year before. In a bold step further into the AI landscape, Meitu launched MiracleVision in June, a self-developed generative AI model. MiracleVision is now at the heart of Meitu’s apps, enhancing photos and videos with features such as facial adjustments and virtual makeup. Remarkably, AI now enhances about 83% of the content edited with Meitu’s applications.

The company’s commitment to AI didn’t stop at internal development; in September, Meitu joined forces with Tencent Holdings, a giant in Chinese social media and video gaming, to back Enflame, an AI chip start-up. This collaboration underscores Meitu’s dedication to advancing AI technology, not just within its applications but also in the broader tech ecosystem.

Reflecting on the company’s recent achievements, a statement on WeChat highlighted the challenges Meitu faced in the past and how returning to its core strengths has been instrumental in its recent success. “We have struggled in the past few years and it wasn’t easy,” the company acknowledged, adding, “We returned to our original aspirations and focused on what we do best.”

Founded in 2008 in Xiamen, Fujian province, Meitu has been synonymous with beautifying apps that allow users to enhance their selfies with various built-in functions. However, the company’s venture into AI signifies a strategic shift, positioning itself as a leader in the AI domain. Despite previous setbacks in attempts to diversify into smartphones and social networking, and a risky foray into cryptocurrencies that led to warnings of potential losses during a market sell-off in 2022, Meitu’s focus on AI has heralded a new era of prosperity.

By the end of 2023, Meitu boasted around 250 million monthly active users and saw its number of paying subscribers increase by over 62% to 9.11 million. The company is optimistic about the future, anticipating the launch of more generative AI features in 2024, aimed at enhancing both images and videos.

This narrative of transformation and success provides a compelling glimpse into the potential of AI to redefine businesses and industries. Meitu’s journey from a selfie app developer to a forefront runner in AI innovation not only showcases its adaptability and resilience but also signals a promising future for AI-driven technologies in enhancing digital experiences for users worldwide.

Source: SCMP

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