Kling AI, a Beijing-based AI video-generation firm spun off from Kuaishou Technology, is close to raising US$3 billion at a post-investment valuation of US$18 billion.

The company could begin a Hong Kong listing process within 12 months, according to people familiar with the matter.

The valuation is below the initial US$20 billion target discussed in April, one source said.

Another source said Tencent is among the investors, as competition in China’s AI video-generation market intensifies.

Kuaishou, a Beijing-based short-video platform operator that competes with Douyin in China, said in a May 12 Hong Kong exchange filing that it was assessing a proposal to restructure Kling AI, which could include fundraising from external investors.

A source close to the deal said IPO proceeds would go toward computing and data-center expansion, as well as hiring and retaining talent.

Kling AI makes money through user subscriptions for video and image-generation services, and by giving developers access to its models through an application programming interface service.

Kuaishou has also said its 2026 capital spending could reach 26 billion yuan (US$3.83 billion), while Kling AI generated 340 million yuan (US$50.1 million) in revenue in the fourth quarter.

🔗 Source: South China Morning Post

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