1. China's AI industry shifted from chatbot subsidies in February [para. 1], AI agents in March [para. 1], to intense competition in AI-generated video by April across the tech and content ecosystem [para. 1]. This phase emphasizes commercialization, with AI video offering viable revenue due to strong demand and a vast market [para. 2].2. Companies from model developers to game studios and advertisers are entering, facing challenges like copyright disputes, safety risks, and regulation [para. 3]. Globally, it tests generative video sustainability, potentially favoring China amid Western resistance [para. 4].3. Competition exploded: nearly 10 video models launched worldwide since January, mostly in China [para. 6]. Kuaishou updated Kling on Feb. 5 [para. 7]; ByteDance's Seedance 2.0 soon after gained popularity for dynamic movement [para. 7]. Kunlun's SkyReels V4 topped benchmarks in March [para. 8]; Alibaba's HappyHorse 1.0 launched early April [para. 8].4. Platforms and gamers joined: Bilibili's Updream beta [para. 9], iQiyi's AI for producers [para. 9], Tencent's video-to-3D and text-to-game world tools [para. 9]. Mihoyo's co-founder launched U.S. startup for real-time singing characters [para. 10].5. Use cases span ads, e-commerce demos, entertainment shorts [para. 11]. ByteDance's Doubao hit 120 trillion daily tokens by March, doubled in 3 months, driven by video/agents [para. 12]. 2025 saw >2B AI clips, 14x YoY increase [para. 13]; Douyin projects $36B global enterprise market by 2030 [para. 13].6. Strategies diverge amid surging demand [para. 15]. Kuaishou's Kling earned >1B yuan ($147M) in 2025 from millions of users/thousands clients [para. 16], expects doubling in 2026 despite immaturity [para. 17]. Seedance 2.0 priced at 13.8 yuan/15s clip (~1 yuan/s), higher than rivals amid waits [para. 18]; seller's market with min spends [para. 19].7. Monetization: developers sell API access, users buy credits, clouds charge compute [para. 20]. Alibaba's HappyHorse free/open-source for marketing, but unsustainable [para. 21]; targets $100B cloud/AI revenue in 5 years via token/model-as-service reorganization [para. 22].8. Challenges mount: realistic video sparks likeness/IP disputes [para. 25]. Beijing court ruled for actress Dilraba Dilmurat [para. 26]. Platforms actioned hundreds of works [para. 27]; ByteDance halted Seedance features/overseas rollout after Hollywood IP backlash [para. 28]. Volcano Engine built copyright system [para. 29].9. Regulation tightens: March mandate for AI labels; 6 platforms removed 37,000+ clips, 3,400+ accounts [para. 30]. Campaign axed ~29,000 videos on sensitive themes [para. 31]. LiblibAI fixed porn filter gaps [para. 32].(Word count: 498)AI generated, for reference only