According to insiders, Kuaishou Technology plans to spin off its large model video generation business "Kling" as an independent entity before its IPO in 2026, aiming to take advantage of the current high attention from global capital markets on the AI sector. Currently, Kuaishou has started discussions with potential investors for a Pre-IPO financing round for Kling, which is expected to be valued at $20 billion.

Kuaishou

As a core product of Kuaishou's layout in general artificial intelligence (AGI), Kling AI, since its launch in 2024, has been regarded as a strong competitor to OpenAI Sora in the Chinese market due to its ability to generate high-definition videos from text and images. Financial data shows that Kling's commercialization process has been highly explosive: by January of this year, its annualized revenue had exceeded $300 million, with a single quarter revenue of $75 million in Q1 2026, mainly driven by overseas markets such as North America. Kuaishou's official forecast suggests that the business could double its annual revenue in 2026.

In terms of business model, Kling has established a diversified revenue matrix covering C-end subscriptions (monthly fees ranging from $6.99 to $127.99) and B-end API calls, widely applied in fields such as film, e-commerce, and gaming, with a global creator base exceeding 60 million. This spin-off not only means that Kuaishou will use independent capital operations to compete with top rivals like ByteDance, Google, and Alibaba, but also indicates that short video platforms are fully transitioning from the era of traffic dividends to AI-driven productivity competition. If this financing and spin-off are successfully completed, Kling is expected to become one of the most commercially valuable unicorns in the global AI video sector.