Kuaishou shares surge 10% on Kling AI spin-off reports
On Tuesday, shares of Kuaishou Technology surged by as much as 10% after news emerged that the Chinese short-video platform is seeking new investments for its Kling AI division, which is valued at US$20 billion. The LatePost reported that Kuaishou intends to separate its video generation service and is negotiating with potential backers, including Tencent Holdings, to secure US$2 billion. Currently, Kling boasts an annualized revenue run rate of US$500 million, which is twice the amount recorded before the Chinese New Year. Neither Kuaishou nor Kling provided comments when approached for feedback.
Key facts
- Kuaishou shares surged up to 10% on Tuesday.
- Kuaishou is raising new funding for its Kling AI unit at a US$20 billion valuation.
- The spin-off plans were reported by The LatePost on Monday.
- Kuaishou is in talks with Tencent Holdings and other investors to raise US$2 billion.
- Kling AI has an annualized revenue run rate of US$500 million.
- Revenue run rate doubled before Chinese New Year.
- Kuaishou is a rival to ByteDance-owned Douyin in China.
- Kuaishou and Kling did not comment.
Entities
Institutions
- Kuaishou Technology
- Kling AI
- Tencent Holdings
- ByteDance
- Douyin
- The LatePost
Locations
- China