Kuaishou's Kling AI reportedly raises $3 billion

Kuaishou's artificial intelligence platform for video generation, Kling AI, is reportedly nearing the completion of a significant $3 billion funding round. Tech giant Tencent is said to be participating in this investment round. Upon finalization, Kling AI is projected to achieve a valuation of $18 billion. The funding initiative is part of Kuaishou's broader strategy to potentially spin off its AI division. Media outlets previously reported in May that Kuaishou was considering separating Kling AI and aiming for an initial public offering as early as the first quarter of 2027. The company has confirmed it is evaluating a restructuring plan for Kling AI, which could include bringing in external investors. Kuaishou has initiated discussions with potential investors for a pre-IPO financing round. Initial reports suggested a target valuation of $20 billion for Kling AI. The company's filing with the Hong Kong Stock Exchange detailed the ongoing evaluation of the restructuring, which may involve external capital infusion. Kling AI, launched in June 2024, offers text-to-video and image-to-video generation capabilities, positioning itself in the rapidly evolving AI sector.