In July 2026, Kling AI (kling.ai), a large-scale AI video generation model developed by Kuaishou, completed an independent funding round. It attracted investors including Tencent, Alibaba, and Baidu, with a pre-money valuation of $15 billion. The total funding reached a maximum of $3 billion, and the post-money valuation is expected to reach $18 billion. Kuaishou retains a 68.33% controlling stake.
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Billion in Funding, Post-Money Valuation Reaches Billion" class="wp-image-13976 j-lazy"/>Following this round of financing, Kuaishou’s shareholding decreased to approximately 68%, but the company will remain consolidated in its financial statements. This signifies that Kling AI has transformed from an internal capability module within the group into a rare AI asset with independent financing channels and IPO prospects.
Commercial performance supports the high valuation: The company’s ARR (Annual Recurring Revenue) reached approximately $500 million in March 2026, with Q1 revenue increasing by over 300% year-on-year. JPMorgan Chase predicts that its ARR is likely to exceed $1 billion in the first half of 2027. Over 70% of revenue comes from overseas markets, with API calls and enterprise subscriptions forming a dual-engine growth model.
Kling AI is evolving from an “AI tool for content platforms” to a “global AI video generation infrastructure,” becoming a key force for China to maintain its global leadership in the video generation field.
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