Kuaishou’s Kling AI Secures $2.8 Billion in Financing Commitments

Kuaishou Technology is advancing a financing and restructuring plan for its Kling AI video business, with investors committing $2.79459 billion to the entity expected to hold the relevant assets.

Initial investors agreed to invest RMB13.8236 billion ($2.0282 billion) in Beijing Kling on July 2, 2026. Fifteen additional investors committed RMB5.2235 billion ($766.39 million), bringing total commitments to RMB19.0471 billion. The total subscription limit is RMB20.4471 billion, or about $3 billion.

The financing documents value Beijing Kling at $15 billion before the transaction. Kuaishou’s ownership could decline from 100% to approximately 68.33% after the financing and employee equity schemes.

Kuaishou’s board said on May 12, 2026, that it was “assessing a proposal to restructure” Kling AI assets and businesses. The company said the proposal was “still at a preliminary stage” and that “there is no assurance that such proposal will proceed.”

The planned structure includes a possible future initial public offering in Hong Kong, but it does not establish that a listing application has been submitted. Investor redemption rights may apply if Beijing Kling fails to complete an IPO by applicable deadlines, including Oct. 30, 2031, subject to the agreement’s conditions.

Kling AI generated more than RMB650 million in revenue during the first quarter of 2026, an increase of more than 300% from a year earlier. Kuaishou reported an annualized revenue run rate of approximately $500 million in March 2026 and Kling AI revenue above RMB850 million in the second quarter, up more than 200% year over year.

Kling AI is Kuaishou’s generative-video business. Its Kling 3.0 model supports multimodal inputs and outputs and can generate videos of up to 15 seconds.

The financing terms leave the IPO as a future condition rather than a completed listing process, with the Oct. 30, 2031 deadline among the dates specified for investor protections.