Around April 7, a mysterious AI video model called HappyHorse-1.0 appeared on the Artificial Analysis benchmarking platform and immediately climbed to the top of blind-test rankings for both text-to-video and image-to-video generation. Nobody knew who made it. Then CNBC revealed the answer: Alibaba. Specifically, Alibaba's ATH AI Innovation Unit.
Why This Matters
The AI video generation market just got a new frontrunner, and it is not from Silicon Valley. HappyHorse beat out Google's Veo 3.1, Kling 3.0, and every other model in blind testing — meaning real users preferred its output without knowing which model made it. That is the hardest benchmark to game and the most meaningful one for creators who actually need to use these tools.
Alibaba submitting anonymously and winning on merit before revealing their identity is a power move. It sidesteps the hype cycle entirely and forces the conversation to be about output quality rather than brand recognition.
The Current AI Video Landscape
With Sora shutting down on April 26 and the market in flux, here is where the major players stand:
- HappyHorse-1.0 (Alibaba) — New #1 in blind testing. Excellent text-to-video and image-to-video. Details on pricing and availability still emerging.
- Google Veo 3.1 — Broadcast-quality output, recently reduced pricing on Veo 3.1 Fast. Free tier available through Google Vids for all Google accounts.
- Kling 3.0 — Best for photorealistic humans and longest single clips at 5 minutes. Strong image-to-video capabilities.
- ByteDance Seedance 2.0 — Integrated into CapCut. Includes safety measures and invisible watermarking. Good for short-form content creators.
What This Means for AI Show Creators
If you are making serialized AI content — microdramas, AI shows, short-form series — the arrival of HappyHorse means the price-quality curve just shifted again in your favor. More competition means better tools at lower prices. Production costs for AI video have already dropped 91% since 2024, from $4,500 per minute to roughly $400 per minute. That number is about to drop further.
The practical advice: do not marry any single tool. We make Fruit Love Island by picking the best tool for each shot. When a better option appears, we switch. HappyHorse looks like it could be the next switch for a lot of creators — but only once pricing and API access are clear.
The Bigger Picture
A year ago, Sora was supposed to own this market. Now it is dead, and the top model is from Alibaba. The AI video space is moving too fast for any single company to dominate. That is good news for independent creators. It means the tools will keep getting better, cheaper, and more competitive. Your only job is to make something worth watching with whatever tools are best today.