Chinese short video platform Kuaishou Technology reportedly plans to spin off its Kling AI video generation unit as an independent company and go public by 2027. The target valuation is $20 billion.
Kuaishou’s own market capitalization is approximately $25 billion as of April 2026. Spinning off an AI subsidiary that represents nearly 80% of the parent company’s value is either a bold statement about where future growth lies or a creative accounting exercise.
Kling AI backstory
Kling AI was released in June 2024 with a simple pitch: enter text and get a high-quality video. The tool produces up to 2 minutes of 1080p video, making it a direct competitor to OpenAI’s Sora and Runway video model suites.
Why a spin-off and why now?
By spinning off Kling into its own entity, Kuaishou could theoretically unlock additional shareholder value, which analysts estimate at between $5 billion and $10 billion.
What this means for investors
A target valuation of $20 billion would make Kling one of the world’s most valuable standalone AI companies, as a division less than three years old, before it has even proven itself as an independent company.
Chinese tech companies seeking an IPO have faced a regulatory environment that has been unpredictable at best and hostile at worst over the past few years. While the 2027 timeline gives Kuaishou some runway, regulatory delays have derailed more specific deals than this one.
