Kling AI

AI Video Generation · Generative AI · China Tech

Funding

Kuaishou's Kling AI unit completes $2.9B financing round

The structure guarantees investors an 8% annual return if a promised IPO doesn't happen by 2031.

• Kuaishou's video-generation subsidiary Beijing Kling completed a financing round of about RMB19.8 billion ($2.9 billion), closing just under the RMB20.45 billion cap set when the deal was announced in July.
• Kling AI makes video-generation models that compete with OpenAI, Google and ByteDance, and has drawn over 100 million users across 200+ countries and more than 50,000 business customers.
• Despite bringing in outside capital, Kuaishou keeps control through its Lucky Labs holding vehicle, which owns 66.68% of Beijing Kling's equity and 52.45% of its voting rights.
• Two investors, Dakang Lanwu and BFI MIDCO, failed to complete their payments and were terminated from the deal; five replacement investors, including units of Kingdee International and MetaX, absorbed their commitments.
• The round valued Beijing Kling at $15 billion pre-money in July, based on roughly RMB1.1 billion in 2025 revenue and a March 2026 annualized revenue run rate of about $500 million.
• Investors secured redemption rights: if Beijing Kling hasn't completed an IPO by October 2031, they can demand their money back plus an 8% annual simple-interest return.
• Kling is reportedly planning a Hong Kong IPO next year and has already picked banks for a listing seeking at least $1 billion, according to Bloomberg reporting cited by multiple outlets.
• The deal's redemption clause shows investors hedging their bets on China's AI video boom, treating the equity check almost like a convertible loan tied to a hard IPO deadline.