Kuaishou files for $3B Kling AI funding round in Hong Kong, eyes IPO within 12 months
Chinese short-video giant is spinning off its AI video-generation unit with backing from General Atlantic and Tencent at an $18 billion valuation
Kuaishou Technology, the Chinese short-video platform that trades on the Hong Kong Stock Exchange under the ticker 1024, is pulling one of the more ambitious moves in the AI funding landscape this year. The company is filing for a $3 billion funding round for its AI video-generation subsidiary, Kling AI, in Hong Kong, with plans to take the unit public within the next 12 months.
The round values Kling AI at $18 billion post-money. General Atlantic is leading the charge, with Tencent also participating.
The valuation haircut nobody’s talking about
That $18 billion number actually represents a downward revision. Back in April, Kuaishou was shopping Kling AI at a $20 billion valuation. A $2 billion trim might sound like a rounding error at this scale, but it’s a 10% markdown that reflects shifting market dynamics in how investors are pricing generative AI companies.
What Kling AI actually does
Kling AI specializes in text-to-video generation. The unit has reportedly experienced significant growth in annual recurring revenue, driven by recent advancements in its video-generation models. The $3 billion in fresh capital is earmarked for expanding data centers and recruiting talent.
The Hong Kong IPO angle
Kuaishou isn’t just raising money. It’s setting the stage for Kling AI to list independently on the Hong Kong Stock Exchange within the next 12 months. The involvement of General Atlantic, a global growth equity firm, alongside Tencent, one of China’s most powerful tech conglomerates, gives the eventual IPO a stamp of institutional credibility.
What this means for investors
An $18 billion post-money valuation for a text-to-video generation platform provides a reference point for how the market is pricing comparable companies. The 10% markdown from $20 billion to $18 billion already hints at some air coming out of initial expectations. Investors should watch the company’s revenue trajectory and the broader Hong Kong IPO market closely over the next several quarters to gauge whether that 12-month timeline holds.