Kuaishou Technology saw its shares rise by up to 10% on Tuesday following news that the company is seeking new funding for its Kling AI unit, aiming for a valuation of $20 billion. Kuaishou, a competitor to Douyin in China, is reportedly planning to spin off its video generation service. Discussions with potential investors, including Tencent Holdings, are underway to raise $2 billion. Kling AI has achieved an annual revenue run rate of $500 million, doubling since the Chinese New Year. While reports suggest a potential initial public offering for Kling AI in 2027, Kuaishou has stated it is evaluating a restructuring proposal that might involve external funding. The company’s share price closed with a nearly 2% increase at HK$52.6 on Tuesday. Kling AI’s revenue momentum has been strong, with an ARR of $300 million in January and projections to more than double by 2026, according to Kuaishou’s CEO Cheng Yixiao.
Are Kuaishou shares surging due to Kling AI’s potential $20 billion spin-off?
