Shares of Kuaishou-W (HKEX: 01024) have surged more than 6%. At the time of writing, the stock is up 6.3% to HK$47.24, with a turnover of HK$1.048 billion.

This movement follows media reports indicating that General Atlantic is currently in discussions to lead a substantial funding round for the company's video AI division. Public information suggests that Kuaishou's video generation large model, "Kling AI," which has previously been reported to be planning a spin-off, is seeking to raise $2 billion at a valuation of approximately $20 billion. The company is reportedly in talks with potential investors, including Tencent.

In the first quarter of this year, Kling AI generated revenue exceeding 650 million yuan, representing a year-on-year growth of over 300%. Its Annual Recurring Revenue (ARR) for March had already approached $500 million.

Analysts at J.P. Morgan project that this ARR figure could surpass $1 billion by the first half of 2027. The firm further notes that, based on recent company announcements and news reports, Kling AI's pursuit of external financing is likely to trigger a revaluation of the unit by its parent company, Kuaishou.