Khaby Lame’s $900 Million AI Avatar Deal Sends Stock Up 650% Before Sharp Fall

Questions are mounting over a large business transaction linked to TikTok star Khaby Lame after a small Hong Kong company said it had bought a firm associated with the social media star, triggering a sharp spike in its share price that quickly reversed into an equally steep fall.

US-listed Rich Sparkle Holdings recently announced the acquisition of Step Distinctive Limited, the business entity associated with Lame, in an all-stock deal valued at roughly $900 million to $975 million. 

The centrepiece of the transaction is a plan to deploy an AI system trained to replicate Lame’s expressions, gestures and on-screen behaviour, enabling his digital likeness to generate content, host livestream shopping sessions and execute brand campaigns across geographies and time zones.

The company described the move as a shift toward “influencer-driven commercial infrastructure”, positioning Lame not merely as a brand ambassador but as a core commercial engine. Rich Sparkle has projected that the model could eventually support up to $4 billion in annual revenue, driven by e-commerce, licensing and global brand partnerships.

Markets reacted swiftly. Following the announcement, Rich Sparkle’s shares surged more than 650%, briefly pushing the stock price above $180 per share and catapulting the company to a multibillion-dollar valuation on paper. The structure appeared to place Lame among the most highly valued figures in the creator economy, at least by headline numbers.

That valuation, however, came under scrutiny just as quickly. Forbes noted that Rich Sparkle has a very small public float, meaning limited shares are actively traded. In such conditions, even modest buying pressure can trigger dramatic price movements. The stock later retreated sharply, reinforcing warnings that the spike reflected market enthusiasm rather than realised economic value.

The deal also underscores a broader industry shift toward AI-native celebrity models, where a creator’s persona can be replicated and deployed continuously without physical participation. While questions around data governance and personality rights are beginning to surface, the immediate focus remains on whether Rich Sparkle can turn a viral identity into a sustainable, tech-led business.