AIKuaishou shares soar as Kling AI eyes US$20 billion valuation in potential spin-off

The Chinese short-video platform’s shares jumped as much as 10 per cent amid US$20 billion valuation of spin-off, Tencent investor talks

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Published: 11:04am, 12 May 2026Updated: 5:00pm, 12 May 2026

Kuaishou Technology’s shares jumped as much as 10 per cent on Tuesday morning after reports that the Chinese short-video platform was raising new funding for its Kling AI unit at a valuation of US$20 billion.

Kuaishou – often seen as a rival to ByteDance-owned Douyin in China – plans to spin off its video generation service, according to a report by Chinese technology news outlet The LatePost on Monday, citing anonymous sources.

The company is in talks with potential investors, including Tencent Holdings, to raise US$2 billion, according to the report. Kling currently has an annualised revenue run rate (ARR) of US$500 million – about double what it was before Chinese New Year, the report said.

Meanwhile, a separate report by The Information technology website on Monday said that Kuaishou is planning an initial public offering for Kling AI in 2027, citing anonymous sources.

In response to the financing and listing reports, Kuaishou said on Tuesday that the company is “assessing a proposal to restructure” Kling AI that could involve external funding. However, the proposal is still in the preliminary stage, according to an announcement filed to the Hong Kong stock exchange.

Kuaishou’s share price rose nearly 2 per cent to close at HK$52.6 on Tuesday.

Kling AI’s monetisation has been gathering pace as its ARR reached US$300 million in January, and the company expected the service’s revenue to “more than double” in 2026, according to Kuaishou co-founder and CEO Cheng Yixiao in an earnings call in March.

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The Chinese short-video platform’s shares jumped as much as 10 per cent amid US$20 billion valuation of spin-off, Tencent investor talks

The Chinese short-video platform’s shares jumped as much as 10 per cent amid US$20 billion valuation of spin-off, Tencent investor talks