Kuaishou Technology’s Kling AI has raised about $2.8 billion from a group of investors to expand its AI video operations. The financing values the AI video business at about $15 billion on a pre-money basis, according to Bloomberg.
The funding includes commitments from major investors including Alibaba, Tencent, and Baidu. The round underscores continued investor appetite for China’s fast-growing AI sector.
According to Kuaishou’s Hong Kong exchange filing, Beijing Kling entered into a capital increase agreement on July 2, 2026. Initial investors agreed to inject RMB13.82 billion, or about $2.03 billion, into Beijing Kling, subject to certain conditions.
Additional investors also agreed to inject RMB5.22 billion, or about $766.4 million, into Beijing Kling through joinder agreements. The total subscription price under the capital increase agreement is capped at RMB20.45 billion, or $3 billion, representing about 16.67% of Beijing Kling’s enlarged registered capital.
Kuaishou’s ownership in Beijing Kling is expected to be diluted from 100% to about 68.33% if the subscription limit and share participation scheme mandate limits are fully utilized. Beijing Kling’s financial results will continue to be consolidated into Kuaishou’s financial statements.
The financing is connected to a broader restructuring designed to allow Beijing Kling to hold Kuaishou Group’s Kling AI-related assets and businesses. Kuaishou said the restructuring is expected to be completed no later than nine months after the latest payment date under the capital increase agreement, unless extended by investors holding more than 50% of the subscription amount.
Kuaishou described Kling AI as a world-leading large video generation model developed in-house. Since the release of Kling AI 1.0 in June 2024, the product has undergone more than 30 major version updates and offers paid subscription memberships for prosumers and API services for enterprise clients.
Kling AI generated more than RMB650 million in revenue during the first quarter of 2026, representing year-over-year growth of more than 300%. In March 2026, Kling AI’s annualized revenue run rate was approximately $500 million.
Kuaishou said the proceeds, if the subscription limit is fully used, are expected to support business expansion, daily operations, working capital, team development, and other purposes approved by Beijing Kling’s board. The company also said the financing and restructuring could better reflect the value of Kling AI-related assets and businesses on their own merits.
The company said the new structure should make Beijing Kling more appealing to investors focused on AI video generation. It also said the financing could enhance Beijing Kling’s profile among customers, suppliers, and potential strategic partners while allowing Kuaishou to retain overall strategic control.
Kling AI competes in the fast-growing market for generative video tools that can create videos and short films from prompts. The business is part of a broader wave of Chinese AI video services seeking revenue from global customers.
