<cite index="20-3">Kuaishou Technology disclosed that investors have committed over 19 billion yuan ($2.8 billion) to Kling AI at a $15 billion pre-money valuation, with the round capped at 20.45 billion yuan, or roughly $3 billion, once remaining investors join. That puts the deal's post-money valuation at approximately $18 billion, according to a Reuters report confirming the round has effectively closed with 38 investors, including Tencent, Alibaba Cloud, Baidu, CITIC Securities and Industrial and Commercial Bank of China.</cite> <cite index="20-2">The round arrives weeks after OpenAI shut down Sora's consumer app and Runway pivoted away from commercial video, leaving Kling AI as one of the few AI video players with real revenue behind its valuation.</cite>
<cite index="16-4">Approximately 75% of Kling AI's revenue comes from overseas markets such as North America, with cumulative global users surpassing 100 million.</cite> <cite index="16-3">Kling AI's quarterly operating revenue had already exceeded 650 million yuan (approximately $95.9 million), representing year-over-year growth of over 300%. The annualized revenue run rate (ARR) reached $500 million in March 2026, compared to just $100 million in the same period last year — a fourfold increase within a single year.</cite>
<cite index="13-1">Bloomberg had reported that Kuaishou was targeting a $15 billion valuation going into the raise, meaning the final number came in above expectations.</cite> <cite index="20-3">The raise dilutes Kuaishou's stake in Kling AI from 100% to about 68%.</cite> <cite index="13-5">Kuaishou plans to spin off Kling and list it on the Hong Kong Stock Exchange, a move that sources familiar with the matter flagged as early as May. The timing fits neatly into a broader pattern: Chinese AI firms MiniMax and Zhipu AI have both recently gone public in Hong Kong, some backed by the same strategic investors — including Tencent and Alibaba — that are now backing Kling.</cite>
For practitioners tracking the AI video market, this funding signals a decisive market repricing. Kling's combination of commercial traction ($500M ARR, 300%+ YoY growth), integrated distribution (via Kuaishou's 700M+ users), and a clear IPO path over 18 months creates a benchmark for AI video unit economics in a window when Sora and Runway have de-prioritized consumer monetization. The $20B-to-$18B valuation compression from initial ask to close is investor discipline made visible—and will set ceilings on competing AI video fundraises in H2 2026.