Alibaba NYSE:BABA has joined a major $2 billion financing round for Kuaishou Technology's Kling AI, giving the generative video platform a pre-investment valuation of about $15 billion. The round included Baidu and Tencent, a previous Kuaishou backer, signaling rising investor interest in China's AI video sector. Kuaishou said Kling could possibly raise about $3 billion if more investors participate later.
Kuaishou Technology (KUASF) rose as much as 6.9% in Hong Kong after the financing update, as investors weighed what could be a major milestone in the company's shift from short-form video toward generative AI. Kling is part of a growing wave of Chinese AI video services seeking revenue from global customers, especially filmmakers, advertisers and creative studios. The platform competes with ByteDance's Seedance and startups such as Shengshu after OpenAI shuttered Sora.
The financing would dilute Kuaishou's stake in Kling to about 68%, while Kling's annual recurring revenue grew to about $500 million in March from $300 million in January, helped by the launch of Kling 3.0. The unit generated more than 650 million yuan, or $96.2 million, in first-quarter revenue, up more than 300% from a year earlier. If Kling succeeds in raising $3 billion, the financing could give the startup a post-money valuation of $18 billion.