Kuaishou's Kling AI raises $3 billion, valued at $18 billion

Kuaishou's AI video platform Kling AI has raised about $3 billion in funding, reaching a valuation of $18 billion. Tencent is among the investors. Kuaishou plans to list Kling AI in Hong Kong within 12 months, using the funds to expand computing power and build data centers.

Kling AI made 650 million yuan in Q1 this year, up 300% from last year. Its annualized revenue run rate hit $500 million, with about 75% of revenue coming from overseas markets. As of last month, it has over 100 million users worldwide.

Kling AI competes with ByteDance's Seedance and US-based Runway in the global video creation market, which is estimated at $140 billion with 10% annual growth over the next three years. Its latest 3.0 model series improves narrative control and consistency in AI video generation.