Kuaishou plans to spin off KeLing AI and raise $2 billion in funding at a $20 billion valuation, with Tencent participating in the negotiations.

BlockBeats News, May 11, LatePost exclusively reported that Kuaishou plans to spin off its video-generation large model business, “Keling AI,” and launch a $2 billion funding round with an estimated valuation of about $20 billion. It is currently in talks with investors such as Tencent, and the transaction has not yet been finalized. Based on the current market capitalization, Keling’s valuation is already approaching 70% of Kuaishou’s overall market cap.

According to the report, Keling’s current annualized revenue (ARR) has reached $500 million, doubling compared with before the Spring Festival, far exceeding Kuaishou’s earlier expectations. In early 2025, Kuaishou had set a full-year revenue target of $60 million for Keling, but the company’s actual full-year revenue ultimately reached $150 million.

In the face of continued heavy investment in video generation by giants such as ByteDance and Alibaba, Kuaishou has set up an independent options pool and a dedicated incentive mechanism for Keling. It is said that if the future IPO valuation reaches $40 billion, team incentives will be further increased.

Currently, Keling has become one of the fastest-growing products in the global video-generation field. In early 2026, in nearly 40 countries and regions including Brazil, Russia, and Singapore, it ranked No. 1 on iOS drawing and design charts, and it has also become one of the highest-earning graphic design apps in South Korea and Russia.