Kling AI plans $1 billion Hong Kong IPO

Kling AI, the artificial intelligence video unit of Kuaishou Technology, is preparing for an initial public offering in Hong Kong that aims to raise at least $1 billion. The company has reportedly engaged CICC, Goldman Sachs, and UBS as underwriters, with a target listing date in early 2027.

Founded in 2024, Kling AI has seen rapid growth, reporting revenue exceeding RMB 850 million in the second quarter of 2026. Its annual recurring revenue (ARR) reached approximately $500 million by March 2026. The unit recently released Kling 4.0, which features enhanced controls and support for 30-second video clips, positioning it against competitors such as ByteDance’s Seedance.

The IPO follows a significant private funding round in July 2026, where Kling AI raised approximately $2.8 billion from investors including Alibaba, Tencent, and Baidu. This round reportedly valued the unit at around $18 billion post-money. As part of the spinoff, Kuaishou’s ownership stake in Kling AI is expected to be diluted to approximately 68%.