Kuaishou's Kling AI Video Business to Spin Off, Targets Next-Year IPO with $20B Valuation

Kuaishou Technology plans to spin off its Kling AI video business and aim for an IPO next year. Reports say Kuaishou is in talks with potential investors for Pre-IPO funding, with a valuation of up to $20 billion. As of press time, Kuaishou has not responded to the rumors.

Kling's commercial progress is impressive: it launched version 1.0 in June 2024 and started paid membership services the same year. In 2025, its annual revenue reached about 1.04 billion yuan, far exceeding the initial target. In January 2026, its Annual Recurring Revenue (ARR) exceeded $300 million, showing continuous growth potential.

Additionally, Kling has been upgraded to a first-level business unit of Kuaishou. Recently, several companies in the AI video track have announced IPO plans, indicating rising industry enthusiasm.