Kuaishou Technology’s Kling AI has raised about $2.8 billion from a group of investors to expand its AI video business. According to Bloomberg, the latest funding values the AI video business at about $15 billion on a pre-money basis.
The funding includes commitments from major investors including Alibaba, Tencent, and Baidu. The round highlighted continued investor appetite for China’s burgeoning AI sector.
Beijing Kling entered into a capital increase agreement on July 2, 2026, according to Kuaishou’s Hong Kong exchange filing. The initial investors agreed to inject RMB 13.82 billion (approximately $2.03 billion) into Beijing Kling, subject to certain conditions.
Additional investors have also agreed to inject RMB 5.22 billion (approximately $766.4 million) into Beijing Kring through a participation agreement. The total capital contribution under the capital increase agreement is capped at RMB 20.45 billion ($3 billion), which is approximately 16.67% of Beijing Kling’s expanded registered capital.
Kuaishou’s ownership of Beijing Clin shares is expected to be diluted from 100% to approximately 68.33% if the subscription limit and the mandatory limit of the equity participation plan are fully utilized. Beijing Kring’s financial results will continue to be integrated into Kuaishou’s financial statements.
The financing is related to a broader restructuring aimed at allowing Beijing Kling to retain Kaishou Group’s Kling AI-related assets and businesses. Kuaishou said the restructuring is expected to be completed within nine months at the latest from the date of the latest payment under the capital increase agreement, unless extended by investors holding more than 50% of the subscription amount.
Kuaishou described Kling AI as a world-leading large-scale video generation model developed in-house. Since the release of Kling AI 1.0 in June 2024, the product has undergone over 30 major version updates and is now available as a paid subscription membership for prosumers and API services for enterprise clients.
Kling AI generated more than RMB 650 million in revenue in the first quarter of 2026, recording more than 300% year-on-year growth. As of March 2026, Kling AI had an annual revenue run rate of approximately $500 million.
Kuaishou said that if the subscription limit is fully utilized, the proceeds are expected to support business expansion, day-to-day operations, working capital, team development, and other purposes approved by Beijing Kling’s board of directors. The company also said the financing and restructuring could better reflect the value of Kling AI-related assets and the business itself.
The company said the new structure will make Beijing Kring more attractive to investors focused on AI video generation. It also said that the latest funding could help Kuaishou maintain overall strategic control while increasing Beijing Kling’s profile among customers, suppliers and potential strategic partners.
Kling AI competes in the booming market of generative video tools that can create videos and short films from prompts. The business is part of a broader wave of Chinese AI video services seeking revenue from customers around the world.
