【AI+1024】Kuaishou plans to spin off Lingling AI, valued at 156 billion yuan, with a possible IPO as early as 2027

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Chinese video platform Kuaishou (01024) Reportedly planning to spin off its artificial intelligence (AI) video business Kling AI for an IPO, potentially happening as early as 2027. Currently in talks with potential investors for pre-IPO funding, with the business estimated to be valued at $20 billion USD (about HKD 156 billion). However, Kuaishou has not yet responded to this.

Valuation nearly matches parent company; revenue forecast exceeds expectations

It is worth noting that Kuaishou closed at 51.6 HKD on Monday (11), giving it a market capitalization of HKD 224.63B. Just the valuation of Kling AI accounts for about 70% of that.

According to U.S. tech media The Information, reports citing sources indicate that Kling AI’s revenue in the first quarter of this year was $75 million USD (about HKD 585 million), with the vast majority coming from overseas markets such as North America. Kling AI expects that by the first quarter of 2027, at the time of the IPO, its annualized revenue will reach $1.3 billion USD.

According to Kuaishou’s financial report, Kling AI’s revenue in Q4 2025 reached HKD 340 million, and revenue in December last year surpassed $20 million USD, with an annualized revenue run rate (ARR) of $240 million USD. CEO Cheng Yixiao stated that Kling AI’s revenue has maintained a very strong month-over-month growth trend this year, with January’s ARR reaching $300 million USD, and he is very confident of achieving over 100% year-over-year growth this year.

Earlier, Kling AI announced the launch of native 4K direct output in its Video 3.0 series models, supporting users to generate films with theater-level quality with one click, becoming the industry’s first video generation model to achieve native 4K output.

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