Kling AI, the AI video subsidiary of Kuaishou Technology, raised between $2.8 billion and $3 billion from investors including Alibaba, Tencent, Baidu, and multiple state-backed funds in early July 2026 [1, 2, 3, 4, 5]. Tencent contributed about $200 million as part of the funding round [5].
The fundraising values Kling AI at $15 billion to $18 billion post-money, with pre-money valuations cited at $15 billion [1, 2, 4, 5]. Originally, Kuaishou targeted a $20 billion valuation in April 2026 but market conditions led to expectations scaling down to the current range by July [2, 4].
Kuaishou will see its stake diluted from 100% to around 68% following this financing [1, 4, 5]. Alongside the major tech investors, others include Beijing Information Industry Development Investment Fund, Beijing Artificial Intelligence Industry Investment Fund, Huace Film & TV, Mango Investment, plus 21 independent investors [3, 5].
Kling AI showed strong revenue growth early in 2026. Q1 revenue hit about 650 million yuan ($96 million), more than quadrupling year-over-year [1, 4]. Annual recurring revenue (ARR) increased from $300 million in January to around $500 million by March, driven by the release of its Kling 3.0 AI video model [4].
The company claims to serve more than 60 million creators globally following its AI video tool launches as of June 2024 [5]. Kuaishou itself is China’s second largest short video platform with approximately 700 million monthly active users who spend an average of 130 minutes daily on the app [5].
Kuaishou filed the $3 billion funding round with the Hong Kong stock exchange in early July 2026 [3]. It plans to spin off Kling AI and pursue a separate listing in Hong Kong within 12 months of the fundraising [2].
Kuaishou’s shares listed in Hong Kong showed volatility amid the funding announcement week, rising initially by up to 6.9% before retreating to previous levels [1, 5].
