Kuaishou-W's stock surged 6.24% during intraday trading on Friday, following the company's announcement of a major capital raise for its artificial intelligence subsidiary.

The short-video platform revealed it will sell a 31.67% stake in its Beijing Kling unit for approximately 19.05 billion yuan ($2.81 billion) to companies and independent investors, valuing the AI video generation business at around $15 billion. Initial investors have committed RMB 13.82 billion, with the total subscription price capped at RMB 20.45 billion.

Notably, two companies controlled by Tencent are among the investors participating in the fundraising. Following the transaction, Kuaishou's indirect stake in Beijing Kling will decrease from 100% to approximately 68.33%, though the company will retain control and continue to consolidate the subsidiary's results. The capital injection is expected to fund Beijing Kling's business expansion, operations, and team development while highlighting the standalone value of Kuaishou's AI assets.