Breaking

Kling AI Raises $2 Billion in Initial VC Round After Kuaishou Spinoff

July 2, 2026 at 11:32 EDT

Media Generation
Funding & M&A
Foundation Models

Kling AI, the video-generation unit spun off from Chinese short-video giant Kuaishou Technology, has secured about $2 billion in an initial venture-capital round to expand its video AI operations.

Kuaishou · Kling AI

Kling AI raises $2B as it spins off toward a 2027 Hong Kong IPO

China's Kuaishou is carving out its video-generation unit, drawing an initial $2 billion round led by US investor General Atlantic — at a post-money valuation revised down to around $18 billion.

$2B

Initial funding raised

$18B

Post-money valuation
(down from $20B target)

100M+

Users · ~50,000 enterprise customers

Revenue run rate is climbing fast

Annualized revenue run rate (ARR) — roughly doubled toward Q1 2026

$240M

Disclosed
ARR

~$500M

Estimated
Q1 2026

Enterprise API use reportedly drives over 60% of revenue in some cases.

Flagship — Kling 3.0

Text-to-video and image-to-video, positioned against Sora, Runway, Google Veo, Seedance and Alibaba models.

Up to 15s clips 1080p · 2K/4K Ultra 30/60fps Native audio + lip-sync Multi-shot Camera controls Physics simulation

Praised in real use

Realistic motion & physics
Strong image-to-video quality
Per-clip cost efficiency
Suits B-roll, ads, short-form

Repeated complaints

Fast credit consumption & pricing changes
Unstable generation & prompt interpretation
Wait times
Poor support

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