Kuaishou KeLing is rumored to raise funds at a $20 billion valuation, seeking a "solo" IPO.

Ask AI · Kuaishou to spin off Kling for an IPO—what considerations lie behind the valuation reshuffle?

Science and Technology Innovation Board Daily, May 11 (Reporter Xu Chihao) According to media reports, Kuaishou Technology plans to spin off its Kling (Kling) AI video business and aims to go public via an IPO next year.

The report said that Kuaishou has been in talks with potential investors regarding pre-IPO financing for Kling, and the valuation for this round of financing would reach $20 billion (approximately RMB 130 billion).

What is notable is that over the weekend, news of Kling’s intention to seek independent financing first surfaced in the venture capital community, sparking widespread attention across the industry.

In response to the above spin-off and IPO rumors, a reporter from Science and Technology Innovation Board Daily promptly verified with Kuaishou Technology. As of the time of publication, the company has not yet provided a clear response.

An anonymous TMT industry analyst told the reporter from Science and Technology Innovation Board Daily that Kuaishou’s push to list Kling on a spin-off basis is likely driven by the need for a valuation restructuring.

“Since this year, after companies building large models such as Zhipu AI and MiniMax listed in Hong Kong, their stock performance has been strong, with market values all exceeding HKD 200 billion. As a company with a dual-track layout of ‘short videos + video large models,’ Kuaishou’s overall valuation is only just over HKD 200 billion. Combined with Kling’s ongoing commercialization progress continuing to exceed expectations, Kuaishou likely believes that the value of its AI business has been undervalued, and a spin-off IPO would enable a revaluation of its value.”

In fact, Kling’s commercialization pace has continued to accelerate since its launch.

In June 2024, Kling 1.0 was officially launched. As the world’s first publicly accessible, Sora-comparable DiT-route video large model, it supports 1080P HD video generation, with a maximum output length of 2 minutes. It then rapidly rolled out image-to-video generation capabilities, completing the core functionality layout. In July of the same year, Kling initiated a full public beta and introduced a paid membership service priced at 66 yuan per month, officially kicking off its commercialization exploration. By the end of 2024, Kling’s cumulative revenue had already surpassed 100 million yuan, achieving an initial breakthrough in commercialization.

Entering 2025, Kling’s revenue performance has remained impressive. According to Kuaishou’s 2025 financial report, Kling’s AI revenue in each of the four quarters of that year was 150 million yuan, 250 million yuan, 300 million yuan, and 340 million yuan, respectively. Its total annual revenue was about 1.04 billion yuan RMB, far exceeding the 60 million USD performance target set at the beginning of 2025.

Although quarter-on-quarter growth has shown some slowdown, Kling’s overall commercialization efficiency continues to improve. Data shows that in December 2025, Kling AI’s monthly revenue exceeded $20 million, corresponding to an annual recurring revenue (ARR) of $240 million. In January 2026, its ARR further rose to above $300 million, and its commercialization potential continued to be unlocked.

At the 2025 earnings release conference, Kuaishou CEO Cheng Yixiao explicitly stated that, based on the current growth momentum, Kling’s revenue in 2026 is expected to grow by double.

In addition, Kling has also made adjustments to its organizational structure.

In April 2025, Kuaishou officially established the Kling AI business unit, positioning it alongside e-commerce, commercialization, internationalization, the main Kuaishou platform, and local life services as first-tier business divisions, granting it independent and ample room for development. In August of the same year, Zhang Di, the former head of the Kling AI technology department, resigned. Kuaishou Senior Vice President Gai Kun then immediately assumed the role of head of that department, reporting directly to CEO Cheng Yixiao, further strengthening Kling’s strategic position within the company.

At the same time, Kuaishou established two companies related to Kling. According to Science and Technology Innovation Board Daily–Qichacha business registration information, Beijing Xingwan Technology Co., Ltd. and Beijing Milexing Technology Co., Ltd., both established on April 13, 2026, were renamed on May 8 as Beijing Kling Technology Co., Ltd. and Beijing Kling Lingdong Technology Co., Ltd., respectively. Both companies are 100% held by Kuaishou.

It is worth noting that behind the rumors that Kling has initiated a spin-off IPO is the IPO boom in the AI video generation track. Reporters from Science and Technology Innovation Board Daily found that since this year, leading companies in the track—Shengshu Technology and Aishi Technology—have repeatedly been reported as preparing for IPOs in Hong Kong.

Among them, Shengshu Technology recently completed nearly RMB 2 billion in financing. Alibaba Cloud led the round, with strategic investments from China Internet Investment Fund (Zhongwang Fund), Jiuan Haitang, TAL Education, and Guanghe Venture Capital, while veteran shareholders such as Xinglian Capital, Datai Capital, and Baidu Venture Capital continued to add to their stakes. The company’s post-investment valuation reached $20 billion.

Aishi Technology completed its $300 million Series C funding round (about RMB 2.06 billion) in March of this year. The round was led by Dinghui Hong Kong Fund, Dinghui VGC, and Dinghui Baifu. Industry investors including China Ruyi and 37 Interactive Entertainment, as well as well-known institutions such as Yizhuang Guotou, Zhongwei Capital, Guotai Junan Innovation Investment, and Suchuang Venture Group jointly participated. After the financing closed, the company officially entered the ranks of global AI unicorns.

As of the close today, Kuaishou’s share price closed at HKD 51.6, with a market capitalization of HKD 224.3 billion.

(Reporter Xu Chihao)