Kuaishou-backed Kling AI nears US$3B funding at US$18B valuation

Kling AI, a spin-off of Kuaishou Technology, is nearing the completion of a fundraising round valued at US$3 billion, which would elevate its post-investment worth to US$18 billion, as reported by sources. This valuation has been adjusted from an earlier goal of US$20 billion set in April, indicating changes in market conditions. Among the investors participating in this round is Tencent. In a filing on May 12 with the Hong Kong stock exchange, Kuaishou revealed it was considering a restructuring proposal for Kling AI, potentially involving external funding. The company anticipates initiating the listing process for Kling AI on the Hong Kong stock exchange within a year, with IPO funds aimed at enhancing computing, data centers, and talent acquisition. On Wednesday, Kuaishou's shares closed up 1.46% at HK$41.60. Kuaishou, Kling AI, and Tencent have not yet responded to requests for comments.