(Bloomberg) — China’s Kling AI, a spinoff from Kuaishou Technology, has raised $2 billion in its first venture capital funding as it aims to expand its video AI business.
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Kuaishou said in a statement Thursday that more investors may join and the company could raise up to about $3 billion.
The startup generates videos and short films from user prompts, similar to OpenAI’s now-defunct tool Sora. The company was valued at $15 billion before the acquisition, according to a statement.
Kling is part of a wave of Chinese AI video services that are moving to fill the void after OpenAI shut down Sora and are looking to draw in revenue from customers around the world. Kling competes with startups like ByteDance’s Seedance and Shengshu in providing high-quality clips for professional filmmakers, advertisers, and creative studios.
Kuaisho earlier said it was evaluating proposals to raise external funding and restructure Kling. The division’s annual recurring revenue, a measure of future sales, increased from $300 million in January to about $500 million in March due to the launch of Kling 3.0. Revenue for the first quarter exceeded 650 million yuan ($96.2 million), an increase of more than 300% year-on-year.
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