Mega Matrix Inc. (NYSE American: MPU) (the "Company") announced a strategic initiative to advance artificial intelligence applications across its business, with a focus on AI-driven short drama production and enterprise AI deployment, as part of its broader effort to improve operational efficiency, optimize cost structure, and support long-term business development.

In content production, the Company plans to integrate AI technologies into key stages of short drama development and production as an upgrade to its existing operations. Initial testing of certain AI short drama production capabilities is expected to begin in the second quarter of 2026, with broader deployment targeted for the second half of 2026, subject to technological readiness, operational execution, regulatory considerations, and market conditions. The Company expects this initiative to remain focused on proprietary platform distribution and content licensing, while also seeking business synergies with AIFLIX, the Company's joint venture. Based on industry benchmarks, the Company expects AI-assisted short drama production to reduce production costs by 30% to 50% and shorten production cycles by more than 50%.

Separately, the Company plans to deploy OpenCLAW as an enterprise AI tool across selected internal functions, including finance, operations, content management, and risk control. Initial implementation is expected to begin in the second quarter of 2026, with broader rollout targeted for the third quarter of 2026. The Company expects OpenCLAW to improve operational efficiency by 20% to 30% and reduce labor costs by 10% to 15%, while implementing appropriate data security, privacy protection, and internal governance measures.

Yucheng Hu, CEO of MPU, commented, "We believe artificial intelligence is not only an important tool for improving enterprise efficiency, but also has the potential to advance the evolution of content production and enable high-quality content to reach broader audiences more efficiently. Based on our existing business foundation, we will prudently advance relevant applications and, while supporting long-term development, contribute to the industry's digital transformation."