China's first AI-generated theatrical film struggles at the box office, yet industry insiders still view it as a stepping stone for future exploration

China's first fully AI-generated film, "Sanxingdui: Future Past," grossed just 1.7 million RMB against an estimated production budget in the tens of millions of RMB. Featuring visuals and select sound effects entirely generated by AI and human-edited, the film drew widespread criticism from audiences and critics alike over narrative logic and character motion dynamics. Despite its poor theatrical performance, industry professionals and investors remain bullish on AI's potential to drive down production costs, even as tens of thousands of AI-powered micro-dramas debut monthly in China, where the market has already reached approximately $3 billion.