Kling AI, Kuaishou's video-generation model, closed a $2.8–3.0 billion funding round at a ~$18 billion post-money valuation, the largest single raise in AI video generation's history. The round was co-led by Abu Dhabi's BlueFive Capital and included investments from Tencent, Alibaba, Baidu, and 34+ other institutions, signaling momentum in the Chinese AI video space as the company prepares for a Hong Kong IPO planned within 12 months.
Unlike most AI video headlines, Kling backs its valuation with real revenue: ~$500 million annualized run rate with approximately 75% coming from overseas markets (North America and international creators). First-quarter 2026 revenue reached ~$96 million, up 300% year-over-year. The company has surpassed 100 million global users, with over 600 million videos generated and 30,000+ enterprise API clients, positioning it ahead of U.S. rivals Runway ($5.3B) and Synthesia ($4B) by valuation despite comparable revenue.
For teams evaluating video-generation infrastructure: Kling's commercial traction (real overseas revenue, enterprise API adoption) contrasts with most frontier-model labs. The massive raise and pre-IPO structure signal institutional confidence in AI video economics at scale. For practitioners building creator tools or AI infrastructure: watch Kling's Hong Kong listing—it will be the market's first deep test of whether video-generation models can sustain 30x+ ARR multiples in public markets.