{"slug": "chinas-kling-ai-nears-us-3-billion-round-at-us-18-billion-valuation-sources", "title": "China’s Kling AI nears US$3 billion round at US$18 billion valuation: sources", "summary": "China's Kling AI, a spin-off from Kuaishou Technology, is nearing a US$3 billion fundraising round at an US$18 billion valuation, with Tencent among the investors. The company plans to start its Hong Kong listing process within a year, as its annual recurring revenue surges following a new AI video model release.", "body_md": "# ExclusiveChina’s Kling AI nears US$3 billion round at US$18 billion valuation: sources\n\nThe Kuaishou Technology spin-off aims to start Hong Kong listing process within a year, as annual recurring revenue soars following latest AI video model release\n\nKuaishou-backed Kling AI is close to completing a US$3 billion fundraising round that would value the company at US$18 billion post-investment, according to people familiar with the matter, as competition intensifies in China’s artificial intelligence video generation sector.\n\nThe latest valuation was narrowed from an initial target of US$20 billion set in April, when Chinese short-video giant Kuaishou first planned to spin off Kling AI, according to a source, reflecting the shifting market sentiment for Kling AI.\n\nInvestors backing this round include Chinese video gaming and social media giant Tencent, another source said.\n\nThe Beijing-based Kuaishou Technology, which competes against TikTok’s Chinese sibling, Douyin, in the Chinese market, disclosed in a May 12 filing with the Hong Kong stock exchange that it was “assessing a proposal to restructure” Kling AI that could involve raising funds from external investors.\n\nKuaishou also expects to start Kling AI’s Hong Kong stock exchange listing process in the next 12 months, according to a source close to the deal, with fundraising from the initial public offering going towards the buildout of computing and data centres and the acquisition and retention of talent.\n\nKuaishou’s Hong Kong-listed share closed up 1.46 per cent at HK$41.60 (US$5.30) on Wednesday.\n\nKuaishou, Kling AI and Tencent did not immediately reply to a request for comment on Wednesday.", "url": "https://wpnews.pro/news/chinas-kling-ai-nears-us-3-billion-round-at-us-18-billion-valuation-sources", "canonical_source": "https://www.scmp.com/tech/big-tech/article/3359059/chinas-kling-ai-nears-us3-billion-round-us18-billion-valuation-sources?utm_source=rss_feed", "published_at": "2026-07-01 12:27:43+00:00", "updated_at": "2026-07-01 12:32:38.111937+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-startups", "ai-products", "generative-ai", "ai-research"], "entities": ["Kling AI", "Kuaishou Technology", "Tencent", "Hong Kong Stock Exchange", "Douyin", "TikTok"], "alternates": {"html": "https://wpnews.pro/news/chinas-kling-ai-nears-us-3-billion-round-at-us-18-billion-valuation-sources", "markdown": "https://wpnews.pro/news/chinas-kling-ai-nears-us-3-billion-round-at-us-18-billion-valuation-sources.md", "text": "https://wpnews.pro/news/chinas-kling-ai-nears-us-3-billion-round-at-us-18-billion-valuation-sources.txt", "jsonld": "https://wpnews.pro/news/chinas-kling-ai-nears-us-3-billion-round-at-us-18-billion-valuation-sources.jsonld"}}