Kuaishou’s AI video generation platform, Kling AI, is reportedly close to completing a $3 billion funding round, with Tencent participating in the investment. Upon completion, Kling AI is expected to be valued at $18 billion. In May, foreign media reported that Kuaishou was planning to spin off Kling AI and launch an IPO as early as the first quarter of 2027.
Kuaishou has already begun discussions with potential investors for a pre-IPO financing round, initially seeking a valuation of $20 billion for Kling AI. The company later confirmed in a filing with the Hong Kong Stock Exchange that it has started evaluating a restructuring plan for Kling AI, which could involve bringing in external investors through the reorganization.
Kling AI is Kuaishou’s in-house AI video generation model, launched in June 2024. It offers text-to-video and image-to-video generation capabilities. [TechWeb, in Chinese]