Kling AI closes about $3 billion funding round as Kuaishou keeps control
Kuaishou said on Friday that its Kling AI video unit has closed a fundraising round worth about 19.8 billion yuan, or roughly $3 billion. The Chinese short-video company announced the completion on 30 October, in a filing to the Hong Kong stock exchange.
Kling makes an AI tool that turns text and images into video, competing with video models from OpenAI, Google and ByteDance. Kuaishou said it will keep about two-thirds of Kling’s shares and 52.45% of its voting rights through its Lucky Labs holding company, so it stays in control of the unit even after bringing in outside money.
The round did not close in full. Two investors, Dakang Lanwu and BFI MIDCO, did not pay on time, and their remaining commitments, worth about 645 million yuan, were ended, according to the stock exchange filing. New investors in the round included a unit of Kingdee International, which put in 300 million yuan, Gongqingcheng Junke with 200 million yuan, and a unit of chipmaker MetaX with 100 million yuan. The new investors also received redemption rights, which can require the company to buy back their stakes if agreed milestones are missed.
Why it matters
The deal is one of the largest single funding rounds for an AI company in China, and it comes after a $2.8 billion raise in July that valued Kling at $15 billion before the new money. Investors including Alibaba and Tencent took part in that earlier round. The size of the new round shows how expensive it has become to build video-generation AI, which needs costly computing power and staff, and how keen investors still are to back the leading Chinese challenger in the field.
What happens next
Attention now turns to a possible stock market listing. Bloomberg has previously reported that Kling is preparing for a Hong Kong listing as early as next year, which could seek at least $1 billion, although no listing has been confirmed. Kuaishou has said the outside money will help fund Kling’s growth while it keeps control.
This article is for general information and education only. It is not legal or financial advice.
Sources
- https://www.tradingview.com/news/reuters.com,2026:newsml_L3N46G1IA:0-kuaishou-s-beijing-kling-unit-completes-near-20-bln-yuan-fundraising/ (Reuters, 30 October 2026)
- https://www.aiaffairs.com/markets/kuaishou-kling-ai-funding-round-2-98-billion/ (AI Affairs, reporting CNA, 30 October 2026)
- https://fourweekmba.com/ai-kling-ai-closes-2-9b-round-as-two-investors-miss-payment/ (FourWeekMBA, 30 October 2026)
