Kling AI Nears $3 Billion Funding Round at $18 Billion Valuation

According to South China Morning Post, Kuaishou's AI video-generation subsidiary Kling AI is close to completing a $3 billion funding round at a $18 billion post-investment valuation, sources familiar with the matter said. The valuation represents a downward adjustment from the initial $20 billion target discussed in April. Tencent is among the investors, as competition intensifies in China's AI video-generation market.

The company could begin a Hong Kong listing process within 12 months, according to sources. IPO proceeds would support computing and data-center expansion, as well as hiring, sources said.