(Yicai) June 18 -- Meitu, a Chinese technology company known for its image-editing app, has launched new and updated artificial intelligence products as well as a CNY100 million (USD14.8 million) AI product innovation competition for startups.

The Xiamen-based firm unveiled Meitu Hatch Catch at its annual product launch and tech showcase event yesterday. The competition will solicit innovative imaging products from AI developers as significant opportunities for innovation in AI applications still exist, founder, Chairman, and Chief Executive Wu Xinhong said.

“Looking globally, there are a large number of AI imaging startups,” Wu said. “A team of fewer than 10 people can achieve annual recurring revenue in the hundreds of millions of [Chinese] yuan.”

Shortlisted teams can receive investment of as much as CNY5 million (USD739,465) and can join Meitu as an internal AI innovation studio, where they will receive incubation support, according to the company.

Wu said he maintains a strong sense of urgency, and that compared with tech behemoths, his greater concern is with startups, many of which are producing highly competitive AI applications.

“In imaging, it’s not necessarily true that the industry giants will succeed simply by spending more money, hiring more people, or leveraging more traffic,” he said after yesterday’s event. “Globally, most fast-growing products come from startups.”

This is why Meitu will commit CNY100 million to the competition, he said, adding that rather than waiting to be disrupted, it is actively seeking to integrate startups into its platform.

The firm’s eponymous Meitu app is transitioning to an AI agent from a simple tool, Wu noted, adding that its business model is shifting from subscription revenue toward a consumption model based on AI computing “points,” bringing greater growth potential to its products.

At the event, Meitu also released four new AI products and updates for four tools. AI portrait editor Picchi, concept image generator Artflo, music visuals creator MVLAND, and AI image production line platform MeituHub made up the new releases, while ZCOOL, X-Design, Kaipai, and RoboNeo, covering uses cases such as designer communities, commercial design workflows, livestreaming videos, and AI short dramas, got updated.

Meitu’s shares [HKG: 1357] finished 6.6 percent lower at HKD4.38 (56 US cents) each in Hong Kong today, while the benchmark Hang Seng Index gave up 1.6 percent to its lowest close this year.

More than five years after the emergence of large language models, Meitu has re-entered the mainstream spotlight through the AI wave after being a long-established internet company, Wu previously said. "AI makes Meitu reborn," he once noted, but has also mentioned several times the feeling of "walking on eggshells.”

Editor: Martin Kadiev