Kling AI raises two billion dollars as Kuaishou spins off its video AI unit

Kling AI, the video generation unit of Chinese tech company Kuaishou, has raised $2 billion in venture capital as Kuaishou spins it off ahead of a planned 2027 IPO. The round could grow to $3 billion, valuing Kling at roughly $18 billion post-money. Tencent is among the investors. Kling's ARR hit ~$500M in March, up from $300M in January, driven by its third-generation model. The spinoff positions Kling to fill the gap left by OpenAI's Sora shutdown, competing with ByteDance's Seedance and Shengshu in the professional video generation market.