en.Wedoany.com Reported - On June 17, Kling AI, the video generation business under China's Kuaishou, is in talks for a new round of funding, with U.S.-based General Atlantic expected to lead the round. Under the current plan, Kling AI aims to raise over $2 billion, with a post-investment valuation of approximately $18 billion. The funding will provide capital and an international investor base for its subsequent spin-off and listing arrangements.
Kling AI is a video generation large model product under Kuaishou, with the English name Kling AI. The product generates videos and short clips based on user text prompts, targeting scenarios such as content creation, advertising production, film and television creativity, and social media operations. It is one of the faster-commercializing directions in the generative artificial intelligence application layer.
The funding round is still in early negotiation stages, and the relevant terms have not yet been finalized. Kling AI previously held preliminary discussions with investors around a target valuation of approximately $20 billion, before adjusting expectations to a post-investment valuation of about $18 billion to align with the current market's capacity to absorb AI application company valuations. In addition to General Atlantic, Kling AI has also attracted preliminary interest from some investment funds focused on the Asian market.
General Atlantic is a major U.S. growth equity investment firm that has participated in early-stage investments in several technology companies. If it ultimately leads the round, it would mark a significant bet in China's generative AI space. For Kling AI, bringing in a major U.S. investment institution could enhance its capital market recognition before listing and expand its fundraising influence in the global AI video generation track.
Kuaishou has previously evaluated external financing and business restructuring plans for Kling AI. Under the relevant arrangements, Kling AI's funding round is closer to a pre-IPO financing round, potentially linking to independent capital operations, a Hong Kong listing path, and international market expansion. No final agreement has been signed yet, and the funding size, valuation, investor list, and listing timeline may still change.
The rise in Kling AI's valuation is tied to the commercialization of AI video generation tools. Such products are transitioning from early model demonstrations to creative production tools, with customer demand covering areas such as ad scripts, short video materials, film previews, product displays, and marketing content creation. Compared to pure text generation tools, video generation requires higher computing power, model quality, generation stability, and copyright compliance, leading leading platforms to concentrate more on technical investment and capital needs.
Competition in China's AI video generation track is accelerating. Kling AI faces competition from large platforms like ByteDance, as well as startups such as Shengshu Technology in video generation models and application tools. If the funding proceeds, it will provide financial support for model iteration, overseas market expansion, computing power procurement, and commercial product development.
For Kuaishou, Kling AI's funding is not just a single product financing but also a key node in its layout of generative AI beyond short videos, live streaming, and content ecosystems. Whether the transaction can be finalized will depend on investor due diligence, valuation negotiations, business restructuring plans, and the capital market's assessment of the commercialization prospects of AI video applications.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
