Kuaishou Technology (HK:1024) shares listed on the Hong Kong stock exchange surged on Thursday to their highest level in over a week, following the company’s artificial intelligence spinoff, Kling AI, securing $2 billion in initial venture capital funding to fuel its expansion.
At 01:11, the stock jumped more than 6%, reaching a peak not seen since June 23, outperforming the broader Hang Seng Index in Hong Kong, which rose by 1.7%.
Based on the funding round’s outcomes, Kling AI is valued at approximately $18 billion prior to this latest capital injection. According to a company statement, the round could eventually expand to around $3 billion if additional investors join, which would reduce Kuaishou’s stake to roughly 68%. Before this funding round, Kling AI was valued at about $15 billion.
Earlier, Kuaishou disclosed that it was considering a proposal to restructure Kling AI by bringing in external investors, noting that discussions were still in their early stages and no final agreements had been signed.
The startup develops software driven by generative artificial intelligence that produces videos and short films based on text prompts. It competes with players like ByteDance’s Seedance and the startup Shengshu, as Chinese AI companies vie for the growing global demand for AI-generated video content from filmmakers, advertisers, and corporate clients.
Kling AI stands as one of Kuaishou’s fastest-growing business segments. The unit’s annual recurring revenue rose to roughly $500 million in March, up from $300 million in January, following the launch of Kling 3.0. In the first quarter, the unit generated over 650 million yuan ($96 million) in revenue, marking a more than 300% increase compared to the same period a year earlier.
The new funding is expected to support the continued development of Kling AI’s products and its international expansion, as competition heats up in the AI video generation market.
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