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Project documentation / Whitepaper

Industry Context and Opportunities

The Convergence of Energy Transformation

Europe is undergoing an unprecedented energy transition. Spain, one of Europe's most solar-rich countries, is rapidly expanding its photovoltaic industry. The growth of renewable energy provides a clean, low-cost electricity foundation for energy-intensive computing.

At the same time, Southeast Asia has become one of the world's fastest-growing regions for digital infrastructure. In Jakarta, a regional data center hub, PDG is developing a hyperscale data center campus in Greater Jakarta with a total capacity of 400 MW. The Runze A-2 data center project in Batam, Indonesia, has a planned installed capacity of 360 MW and is a major public digital infrastructure project supported by Indonesia's national development priorities.

Rapid Growth of AI Short Dramas

According to DataEye Research Institute, the micro-short-drama market was approximately US$4 billion in 2025 and is expected to exceed US$5 billion in 2026. AI short dramas and animated short dramas are becoming key growth drivers. The AI short-drama market was approximately US$100 million in 2025 and is projected to reach US$650 million in 2026, representing sixfold growth. By mid-2026, micro-short dramas had reached 258 million monthly active users.

AI is reshaping short-drama production, with production costs down by approximately 90%. However, the industry still faces three major challenges:

  • High computing costs: AI video generation consumes substantial computing resources, while GPU rental costs continue to rise.
  • Limited content differentiation: AI short dramas in the market are highly homogeneous.
  • User acquisition costs compress margins: Paid acquisition accounts for 60%-80% of revenue, while user data remains on third-party platforms, making it difficult to build lasting audience assets.

AI Short-Drama Costs and Business Structure

As generative AI reshapes the film and television industry, short-drama production costs have fallen by nearly 90%, from RMB 1.5 million for live-action production to less than RMB 200,000 for AI-generated production. Yet the industry remains trapped in severely distorted commercial odds: the hit rate for AI short dramas across the market is only 0.47%, and that for AI animated dramas is below 0.1%. Centralized paid traffic acquisition consumes as much as 70% of end-to-end costs, while the top 5% of traffic platforms capture 70% of industry profits. This means that streaming platforms relying solely on one-way content production and public-channel paid acquisition face capital depletion in a game with very low expected returns. The key to breaking this pattern for a decentralized AI streaming platform is to escape the asymmetric risk of relying on hit content, anchoring upstream infrastructure in high-value IP assets with a high degree of certainty while expanding downstream into a censorship-resistant productivity-tool rental market characterized by high retention and high margins.