Kuaishou Plans to Spin Off Keling AI with $20 Billion Valuation to Raise $2 Billion, Tencent Involved in Negotiations

On May 11, LatePost cited foreign media reports stating that Kuaishou plans to spin off its video generation large model business, Keling AI, and raise $2 billion at an estimated valuation of approximately $20 billion, with Tencent and other institutions participating in the negotiations. The deal has not yet been finalized. According to exclusive reports from LatePost, Keling’s current annual recurring revenue (ARR) has reached $500 million, doubling since before the Spring Festival and significantly exceeding Kuaishou’s previous expectations. In early 2025, Kuaishou had set an annual revenue target of $60 million for Keling, but the final revenue reached $150 million. Kuaishou has established an independent incentive mechanism and a special option pool for Keling to cope with fierce competition from giants like ByteDance and Alibaba in the video generation sector. Currently, Keling’s core team has also become a key target for talent acquisition in the AI video generation field. Keling is now ranked first in iOS drawing and design charts in nearly 40 countries and regions, including Brazil, Russia, and Singapore, and has become one of the highest-grossing graphic design applications in South Korea and Russia.