Kling AI is valued at $18 billion, equivalent to 66% of its parent company Kuaishou. That valuation logic is quite interesting.

According to Coin World News, Kuaishou’s video generation business, Kuaishou AI, is undergoing its first round of financing since the spin-off (Pre-IPO round). The pre-investment valuation is $18B. The related listing filing work is being advanced according to the timeline for submitting materials to the Hong Kong Stock Exchange in early 2027. Based on Kuaishou’s market cap at the close on June 2 (approximately $27.4B), Kuaishou AI’s valuation is already equivalent to 66% of the parent company’s market cap. Kuaishou AI is expected to become the world’s first listed company dedicated to video models. It is expected to complete the restructuring and share reform in 2026, and formally submit its listing application in early 2027.