Kuaishou Technology is in early talks with General Atlantic on a first funding round for its video AI unit, Kling, according to people familiar with the matter.

The round could value Kling at about US$18 billion post-investment ahead of a potential initial public offering.

Kling is seeking to raise more than US$2 billion. It had earlier discussed funding at a US$20 billion target before lowering it to match demand, the people said.

Kuaishou said it is assessing a preliminary restructuring proposal that could let the unit raise outside capital.

Kling is an AI video generator whose revenue rose more than 300% to more than 650 million yuan (US$96.2 million) in the first quarter.

Kuaishou also said the business reached about US$500 million in annual recurring revenue in March.

Kuaishou said Kling is used by corporate and individual customers across marketing, film, television, short drama, and games, and that the app ranked first on Apple’s App Store in 42 markets.

General Atlantic recently led Runway’s US$315 million round at a US$5.3 billion valuation, providing a benchmark for generative video AI deals.

Chinese rules for such services may require security assessments before release and make providers responsible for generated outputs.

🔗 Source: Bloomberg

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