China’s AI video race got a major boost as Alibaba, Tencent, and Baidu joined a big funding round for Kling AI, the video generation unit of Kuaishou Technology. The round raised about 19 billion yuan, or $2.8 billion, and values Kling AI at around $15 billion before the new money.
Kling AI is one of China’s best-known generative video services, and the new funding shows how much investor interest is flowing into AI content tools. The company said the total could rise to about $3 billion if more investors join later, which would push the post-money valuation even higher. Kuaishou’s stake in Kling would fall to about 68% after the deal, according to reports.
The investor list is important because it includes some of China’s biggest tech names. Alibaba joined through its cloud business, while Tencent and Baidu also took part in the round. Tencent had already backed Kuaishou before, so this move deepens its exposure to the fast-growing AI video market.
Kling AI has also been growing quickly on the business side. Reuters reported that the unit generated 650 million yuan in revenue in the March quarter, more than four times higher than a year earlier. That kind of growth helps explain why large investors are willing to put in fresh capital.
The deal also fits a wider trend in China, where AI startups and AI divisions of larger companies are attracting huge funding as firms race to build video, image, and generative AI products. For Kuaishou, the funding could help Kling expand faster and strengthen its position against other AI video players.
FAQs [Frequently Asked Questions]
1. What is Kling AI?
Kling AI is Kuaishou’s generative AI video unit. It creates AI-made videos and is one of China’s most popular video tools.
2. How much money did Kling AI raise?
Kling AI raised about 19 billion yuan, or $2.8 billion. The round could grow to nearly $3 billion if more investors join.
3. Why is this funding round important?
It shows strong interest in AI video tools and brings together Alibaba, Tencent, and Baidu, three of China’s biggest tech companies.