AI Video and Avatars: HeyGen, Synthesia, Sora, Veo — 2026-09-12
Kling AI's revenue has reportedly hit $300 million ARR, highlighting the dominance of Chinese video models in the application layer, while HeyGen integrates Sora 2 and Veo 3.1 to compete on workflow rather than raw generation. Meanwhile, the ad industry is shifting from "AI novelty" to "AI utility," with recent Cannes Lions data showing AI touched 40% of entries but winning campaigns prioritized human-centric creative systems.
AI Video and Avatars: HeyGen, Synthesia, Sora, Veo — 2026-09-12
Top developments
Kling AI Revenue Surges to $300M ARR
Recent reports indicate that Kuaishou’s Kling AI has reached approximately $300 million in Annualized Recurring Revenue (ARR), with some estimates suggesting it could be approaching $500 million by mid-2026. This figure underscores a significant shift where Chinese application-layer companies are capturing value faster than Western counterparts who focus primarily on model development. For the Daily desk, this validates the strategy of bundling high-quality generation with accessible pricing and creator-friendly workflows, a model Kling has aggressively pursued.
HeyGen Integrates Sora 2 and Veo 3.1
HeyGen has updated its platform to directly integrate Sora 2 and Veo 3.1 into its generation pipeline, allowing users to access these premium models without separate subscriptions costing $200–$250/month. This move positions HeyGen not just as an avatar tool, but as a unified workspace for high-end generative video. By abstracting the complexity of multiple vendor APIs, HeyGen is targeting enterprise clients who need consistent output quality across different models for marketing and training content.
Ad Industry Moves Past "AI Anxiety"
Data from Cannes Lions 2026 reveals that while AI was involved in 40% of entries, the Grand Prix winners were defined by human-led creative systems rather than AI execution alone. Agencies are now treating AI as a production accelerator rather than a creative replacement, with Meta’s new "Brand Memory" tools emphasizing governance over raw generation. This signals a maturation in the market where deepfake concerns are being addressed through strict consent frameworks rather than outright bans.
Hailuo (MiniMax) Speeds Up Generation for Live Use
MiniMax’s Hailuo model has demonstrated the ability to generate 5-second, 768P audio-visual clips in under 3 seconds, enabling near-real-time applications like 24/7 "AI TV" streams on Twitch. This speed advantage is critical for live-commerce and interactive advertising, areas where latency has previously hindered AI adoption. Competitors like Runway and Sora are currently focused on higher-fidelity, longer-duration clips, leaving a niche for low-latency, lower-resolution real-time generation.
Local view
In China, local tech media is closely monitoring the "pricing war" between domestic giants. Reports from Smzdm highlight that September saw aggressive price cuts and feature updates from Hailuo and Jimeng, with Jimeng raising prices three times in one month due to demand, while Hailuo focuses on speed-to-cost efficiency. HelloChinaTech notes that Chinese companies are leveraging their early lead in the application layer to monetize video AI faster than US rivals, with Kling’s $300M ARR serving as a benchmark for this success.
Context & numbers
- HeyGen ARR: Estimated at $205 million as of June 2026, up from $123 million at the end of 2025.
- Kling AI Users: Over 60 million creators have used the platform, generating more than 600 million videos.
- Sora Status: The standalone consumer app was shut down in April 2026, but Sora 2 remains available via API and integrations like HeyGen.
- Pricing Benchmark: Kling offers generation at ~$0.07 per second, which is reported as 65% cheaper than Sora’s previous rates.
On the radar
- SAG-AFTRA Voice Clone Disputes: Hollywood voice actors are actively challenging AI voice cloning in ongoing legal and contractual negotiations, which may impact how avatar platforms license synthetic voices.
- Kling Spin-off Rumors: There are persistent rumors of a potential $20 billion spin-off valuation for Kling AI, which could lead to further independence from Kuaishou and more aggressive global expansion.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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