Kling AI raises two billion dollars as Kuaishou spins off its fastest-growing business

TL;DR

Kling AI has raised two billion dollars from venture investors as Kuaishou spins off its AI video unit ahead of a planned IPO.

Kling AI, the video generation unit of Chinese tech company Kuaishou, has raised an initial two billion dollars in venture capital funding, the company said on Thursday. Further investors could still join the round, potentially pushing the total to roughly three billion dollars and diluting Kuaishou’s stake to about 68 percent, according to Kuaishou’s statement. The company’s pre-money valuation was about 15 billion dollars, Bloomberg reported, citing the filing.

The round marks Kling’s first outside fundingsince Kuaishou began exploring a spinoff earlier this year, and it lands at a lower valuation than the 18 to 20 billion dollars that had been discussed in earlier negotiations. The South China Morning Post reported that Tencent is among the investors in the round, which values the company at...

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