Kuaishou's Kling AI ARR Reaches $500M, Up 4-Fold Year-Over-Year

According to Kuaishou's earnings call on May 27, the company's Kling AI business achieved $500 million in annualized recurring revenue (ARR) in March 2026, up from $100 million a year earlier. Q1 2026 revenue reached 33.72 billion yuan, with Kling generating over 650 million yuan in quarterly revenue, up over 300% year-over-year.

Kling's growth is driven by both enterprise API consumption and consumer subscription revenue. The AI video generation platform is primarily used in advertising, short drama production, and gaming. Additionally, Kuaishou reported AI cartoon marketing consumption surged over 100-fold year-over-year, with daily marketing spend peaking above 20 million yuan. Despite 26 billion yuan in planned capital expenditures, CFO Jin Bing stated the company aims to maintain positive free cash flow for the full year.