Kuaishou is spinning out its AI video-generation model Kling AI in a $2 billion-plus fundraising round led by General Atlantic, valuing the business at $18 billion.
Back
Kuaishou seeks $2 billion for Kling AI as General Atlantic leads round
Kuaishou (01024.HK) is in talks with General Atlantic to lead the first external financing round for its video-generation AI model Kling AI, seeking to raise more than $2 billion at an $18 billion post-money valuation, according to people familiar with the matter cited by Bloomberg.
The company hopes to secure backing from major US investors ahead of a potential spin-off and public listing of Kling AI, the people said. Kuaishou initially discussed raising funds at a $20 billion valuation but lowered the target to meet market demand.
Kling AI's annualized recurring revenue surged to about $500 million in March from $300 million in January, reflecting rapid adoption of the video-generation platform. First-quarter revenue reached approximately $96.2 million, up more than 300% from the same period last year.
The spin-off would establish Kling AI as a standalone competitor in the fast-growing AI video generation market, challenging OpenAI's Sora, Runway, and Pika. The $2 billion-plus round — among the largest for an AI model startup — signals institutional confidence in Kuaishou's AI capabilities and could unlock significant shareholder value through a separate listing.
Kuaishou shares rose as much as 5.6% on the news, reaching HKD46.30 before settling at HKD45.56, up 2.52%. Turnover reached 14.3 million shares valued at HKD655 million. The stock trades at roughly 12 times forward earnings, a discount to Chinese internet peers, as the market awaits clarity on the spin-off timeline and valuation.
General Atlantic's involvement provides a key US institutional anchor for Kling AI, which competes in a market where OpenAI's Sora has yet to launch publicly and Runway remains the dominant independent player. Kling AI's revenue trajectory — tripling in three months — suggests strong product-market fit in video generation, a segment that IDC projects will reach $25 billion by 2030.
This article is for informational purposes only and does not constitute investment advice.
[1] General Atlantic Reportedly In Talks to Lead USD2B+ Financing for KUAISHOU-W's Kling AI[2] General Atlantic Reportedly In Talks to Lead USD2B+ Financing for KUAISHOU-W's Kling AI - AASTOCKS.com[3] General Atlantic Reportedly in Talks to Lead Over USD2B Financing for KUAISHOU-W (01024.HK)'s Kling AI at USD18B Post-money Valuation - AASTOCKS.com
