Chinese video generation startup Kling AI secures $3 billion in funding at $18 billion valuation, accelerating multimodal model scaling.

Kling AI, Kuaishou Technology's video generation unit, has closed a funding round totaling nearly 3 billion dollars at an 18 billion dollar valuation. Major investors include Alibaba, Tencent, Baidu, CITIC Securities, and the Industrial and Commercial Bank of China, with 38 investors participating in the round.

The funding reflects investor focus on artificial intelligence video companies with demonstrated commercial viability. Unlike many Western competitors struggling with high compute costs and uncertain revenue models, Kling AI has shown substantial financial growth. In the first quarter, the company generated 650 million yuan—approximately 96 million dollars—a 300 percent increase year-over-year. By March, its annualized run rate reached 500 million dollars, supporting the 18 billion dollar valuation.

Tencent's 200 million dollar contribution is particularly notable given that the company maintains its own video model, Hunyuan. The investment underscores Kling AI's strategic importance, particularly its distribution capabilities within the Kuaishou ecosystem—a distinct advantage over global rivals like OpenAI and Runway.

Kuaishou Technology retains a 68 percent stake in Kling AI. The company is reportedly preparing for a Hong Kong listing within twelve months and plans to deploy the capital toward expanding data center infrastructure and high-performance computing resources to sustain its growth trajectory.