Kuaishou's Kling AI Launches $18B Pre-IPO Funding Round, Sets 2027 Hong Kong IPO Target

According to Beating, Kuaishou's video generation unit Kling AI is conducting its first funding round since spinoff as a Pre-IPO financing, with a pre-money valuation of $18 billion. The company is preparing Hong Kong stock exchange materials for submission in early 2027. At Kuaishou's June 2 closing valuation of approximately $27.4 billion, Kling AI's valuation represents 66% of its parent company's market value.

Kling AI achieved breakout revenue growth in Q1 2026, generating over 650 million yuan with year-over-year growth exceeding 300%. Annual recurring revenue (ARR) reached approximately $500 million as of March 2026, quadrupling from the prior year period. Kuaishou's CEO noted that growth is driven by enterprise API usage and user subscriptions, with primary applications in advertising, short-form video production, and game development.