On the evening of July 2, Kuaishou announced that its large-scale video generation model, Kling AI, had successfully completed an independent round of funding. Lighthouse Capital acted as the exclusive financial advisor and also participated in the investment. The total funds raised reached an impressive $3 billion, with a pre-investment valuation of $15 billion and a potential post-investment valuation of $18 billion. Kuaishou will maintain a controlling stake of 68.33%, setting a new benchmark for funding in the global video generation model sector. The entire process, from the initial leak of the news to the official announcement, spanned just two months.

During the funding process, the Kling AI team meticulously selected investors who could secure approvals promptly and had sufficient financial resources. They also rigorously managed information flow and maintained a streamlined equity structure. The video generation model sector, in which Kling AI operates, stands as one of China’s leading AI sectors on the global stage. Its long-term potential is comparable to that of language models. Projections indicate that by March 2026, it could achieve an Annual Recurring Revenue (ARR) of approximately $500 million, with a price-to-sales ratio similar to those of OpenAI and Anthropic during the same period.

This funding round has established a diversified and brand-focused shareholder structure for Kling AI. Following the transaction, Kling AI will have independent financing, equity incentive, and capital market pathways. Kuaishou will continue to consolidate its financial statements but will exclude this business from the valuation framework of its internet platform. The deal also includes restrictive clauses, such as a provision that if the IPO does not materialize before 2031, investors have the right to request a repurchase of their principal plus 8% simple interest. This is a common growth contract arrangement for AI companies.

Looking ahead, Kling AI will need to make precise judgments about technological trends and allocate resources wisely to sustain its leading position in the market.