Reports indicate that Kuaishou-W's video generation AI business, Kling AI, is initiating its first funding round since being spun off, with a pre-money valuation of $18 billion.

This financing is described as a Pre-IPO round, with Kling AI internally targeting to submit listing application materials for the Hong Kong stock exchange by early 2027.

There has been no official response from Kuaishou regarding these reports.

Financial data shows that in the first quarter of 2026, Kling AI's operating revenue exceeded RMB 6.5 billion, representing a year-on-year increase of over 300%. As of March 2026, its Annualized Revenue Run Rate (ARR) was close to $500 million.

In mid-May, there were media reports that Kuaishou planned to spin off Kling AI for a funding round at a $20 billion valuation. That funding round was said to target $2 billion, with negotiations underway with investors including Tencent, though no deal had been finalized. If completed, Kling AI would become the world's highest-valued independent video generation AI product.

Subsequently, Kuaishou issued an announcement responding that the company had noted media reports on May 11, 2026, suggesting its intent to seek external financing and a potential independent listing for the assets and business related to Kling AI. The company stated that to further leverage external financial resources, its board of directors was evaluating a proposed restructuring plan for the relevant assets and business of Kling AI, which may involve introducing external financing. As of the date of the announcement, the proposed plan remained at a preliminary stage, and no definitive agreements had been signed. There was no guarantee that the proposals would proceed.