Kuaishou plans to spin off KeLing AI, raise $2 billion in funding, with Tencent participating

Kuaishou plans to spin off its video generation large model business, KeLing AI, with a valuation of $20 billion to raise funds—As of today’s Hong Kong stock market close, the entire Kuaishou company is currently valued at less than $29 billion. It is reported that KeLing’s current annualized revenue (ARR) has reached $500 million, more than doubling since before the Spring Festival. This round of KeLing’s planned financing of $2 billion is currently in talks with investors including Tencent, and the deal has not yet closed. If the deal is completed, KeLing will be the highest-valued independent product of a video generation large model globally. As a reference, the globally leading similar product Runway is valued at around $5.3 billion. An insider said that Kuaishou has set a new incentive mechanism for KeLing—if the future IPO valuation reaches $40 billion, team incentives will be significantly increased. In early 2025, Kuaishou set a revenue target of $60 million for KeLing, with KeLing expected to reach $150 million in revenue by the end of the year. The current $500 million ARR has exceeded Kuaishou’s most optimistic expectations. In comparison, MiniMax’s AI product revenue in 2025 (including the video generation product Haijiao AI) is $53.1 million. (Finance Web)