Kuaishou Plans to Spin off KeLing AI for Independent Listing, Stock Price Opens Up 10%

According to a LatePost report, Kuaishou plans to spin off its video generation model business, Keling AI, raising $2 billion at a valuation of $20 billion, with Tencent and other investors currently involved in the negotiations, with the transaction not yet completed.

The growth rate of Keling is the core support for this transaction. The report states that Keling's current annualized revenue has reached $500 million, doubling since the Spring Festival and exceeding Kuaishou's previous most optimistic revenue expectations for it.

As of the close of trading on the Hang Seng Index that day, the entire Kuaishou company's market value is less than $29 billion, while Keling's standalone financing valuation has approached the majority of the parent company's market value. If the financing is completed, Keling will become the most highly valued independent product in global video generation models. The report cites Runway as a reference, with a valuation of approximately $5.3 billion.