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

ME News Report, May 11 (UTC+8), exclusive by LatePost states that Kuaishou plans to spin off its large video generation model business “KeLing AI” and initiate a $2 billion funding round at an estimated valuation of approximately $20 billion. The company is currently in talks with investors such as Tencent, and the deal has not yet been finalized. Based on the current market value, KeLing’s valuation has approached 70% of Kuaishou’s overall market cap.

The report states that KeLing’s current annualized revenue (ARR) has reached $500 million, doubling before the Spring Festival and significantly exceeding Kuaishou’s previous expectations. In early 2025, Kuaishou set an annual revenue target of $60 million for KeLing, but the actual annual revenue eventually reached $150 million.

In response to continuous investments by giants like ByteDance and Alibaba in the video generation field, Kuaishou has established an independent stock option pool and a dedicated incentive mechanism for KeLing. It is reported that if the future IPO valuation reaches $40 billion, team incentives will be further enhanced.

Currently, KeLing has become one of the fastest-growing products in the global video generation field. By early 2026, it ranked first in iOS drawing and design charts in nearly 40 countries and regions including Brazil, Russia, and Singapore, and became one of the highest-revenue graphic design apps in South Korea and Russia. (Source: BlockBeats)