Kuaishou's AI video generation platform, Kling AI, is reportedly close to completing a $3 billion funding round at an $18 billion post-money valuation, with Tencent joining the investment alongside Alibaba and General Atlantic.
According to filings with the Hong Kong Stock Exchange, Kuaishou has confirmed it is evaluating a restructuring plan for Kling AI that could involve bringing in external investors through a reorganization. The company initially sought a $20 billion valuation for Kling AI during pre-IPO discussions.
Kling AI, launched in June 2024, offers text-to-video and image-to-video generation capabilities and has quickly become one of China's most prominent AI video platforms. The service competes directly with OpenAI's Sora and other generative video models.
Kuaishou plans to spin off Kling AI for a standalone Hong Kong listing as early as the first quarter of 2027, according to sources familiar with the matter. The massive funding round underscores the intensifying global race in AI video generation and the premium investors are placing on Chinese AI platforms with proven revenue models.
Tencent's participation is particularly notable, as it signals deepening collaboration between China's tech giants in the AI space, even as competition remains fierce across other segments.
Sources
- technode.comTencent joins reported $3 billion funding round for Kuaishou's Kling AI — TechNode
- technode.comKuaishou's Kling AI raises nearly $3 billion in funding — TechNode
- aiweekly.coKling AI Nears $3B Round at $18B Valuation Ahead of HK IPO — AI Weekly
- scmp.comChina's Kling AI nears US$3 billion round at US$18 billion valuation — SCMP
