Kling AI, a prominent large-scale model product developed by Kuaishou, is on the verge of finalizing a substantial $3 billion funding round, with Tencent and other investors participating. This funding is expected to elevate Kling AI's post-investment valuation to $18 billion. The company has ambitious plans to launch its Initial Public Offering (IPO) in Hong Kong within the next year, with the proceeds earmarked for expanding its computational capacity and data center infrastructure, as well as for attracting and retaining top-tier technical talent.

As a frontrunner in China's text-to-video domain, Kling AI has demonstrated exceptional commercialization prowess. In the first quarter of 2026, its operating revenue surpassed RMB 650 million, marking a year-on-year surge of over 300%. By March 2026, its annualized revenue run rate is nearing $500 million. Despite Kuaishou's silence on the rumors surrounding the funding and IPO, Kling AI's trajectory towards independent operation is evident.

The current valuation represents a slight downward adjustment from its initially planned spin-off valuation, signaling a return to rationality in the primary market for large-scale models. Nevertheless, top-tier projects continue to exhibit robust fundraising capabilities. Kling AI's spin-off, the infusion of external capital, and its pursuit of an IPO are poised to alleviate the pressures of computing costs and expedite the stratification within the industry.