Kuaishou's Kling AI Raises Nearly $3 Billion at $18 Billion Valuation
N.R. Finch
Kuaishou's AI video-generation unit Kling AI is closing a roughly $3 billion round at an $18 billion valuation, with Tencent among the investors — a deal that sets the stage for a Hong Kong IPO within the next 12 months.
What are the core numbers?
Kling AI is set to close roughly $3 billion in funding at a post-money valuation of about $18 billion.
Tencent is participating in the round.
This means → before ever going public, Kling AI has secured a raise on par with a mid-sized IPO, and Tencent's backing adds credibility for the listing ahead.
Why is the valuation below the original target?
When Kuaishou first floated a Kling AI spinoff in April, the initial valuation target was $20 billion.
The round is now pricing at $18 billion — roughly 10% below that mark.
This reflects a recalibration of market expectations for AI video generation. In plain terms = investors are willing to write checks, but not at the seller's opening price.
What comes next for Kuaishou?
On May 12, Kuaishou filed with the Hong Kong Stock Exchange disclosing it is "evaluating a restructuring plan for Kling AI" that may involve outside investors.
Sources say Kuaishou expects to launch Kling AI's Hong Kong IPO process within the next 12 months.
Proceeds would fund two priorities: computing power and data-center buildout, and talent recruitment and retention.
What does this mean for the market?
Kuaishou's Hong Kong-listed shares closed up 1.46% on Wednesday at HK$41.60.
Kuaishou, Kling AI, and Tencent all declined to comment.
Competition in China's AI video-generation space continues to intensify. This means → securing funding is one thing; winning market confidence after listing is the real test of Kling AI's commercial viability.
Content is for reference only, not financial advice.