Kling AI raises $2 billion from Alibaba, Tencent, Baidu

Kuaishou Technology's artificial intelligence video unit, Kling AI, has secured a major funding round of approximately $2 billion from a consortium of leading Chinese technology investors, the company announced. The investment, which values Kling at around $15 billion before the injection, includes participation from Alibaba, Tencent, Baidu, and other financial institutions.

The financing marks Kling's first external capital raise since its parent company, the short-video platform Kuaishou, began exploring a spin-off of the AI division earlier this year. Following the investment, Kuaishou's stake in Kling will be diluted to about 68 percent. The company stated that additional investors could still join the round in the coming months, potentially increasing the total raised to as much as $3 billion and giving Kling a post-investment valuation of roughly $18 billion.

The move underscores intense investor appetite for China's generative AI sector, particularly in video generation. Kling, which creates videos from text prompts, has seen rapid revenue growth. The unit reported revenue of over 650 million yuan (approximately $96 million) in the first quarter of 2026, a more than 300...