‘s video-generation unit Beijing Kling has completed an approximately RMB19.80 billion ($2.91 billion) financing, bringing in a broad group of technology companies, state-backed funds and private investment firms.
The Hong Kong-listed short-video platform operator said in an October 30 filing that all conditions for the subscriptions had been satisfied and participating investors had paid their subscription prices in full. The final total was below the RMB20.45 billion ceiling set when the financing was announced in July.
Kuaishou retains control
After completion, Kuaishou’s holding vehicle Lucky Labs owns 66.68 percent of Beijing Kling’s equity and controls 52.45 percent of its voting rights, according to the filing. Kuaishou co-founder and chairman Cheng Yixiao directly holds 1.01 percent of the equity and 0.79 percent of the voting rights.
The financing followed a restructuring designed to place the group’s Kling AI assets and businesses under Beijing Kling. In its July transaction announcement, Kuaishou said the initial investors had agreed to inject RMB13.82 billion and additional investors had committed another RMB5.22 billion, subject to conditions. The agreement allowed the total subscription price to reach as much as RMB20.45 billion, equivalent at the time to $3 billion.
The July filing put Beijing Kling’s pre-transaction valuation at $15 billion. Kuaishou said its assessment considered the unit’s unaudited 2025 revenue of about RMB1.1 billion, a March 2026 annualized revenue run rate of about $500 million and the growth outlook for AI video generation. Those figures and the valuation rationale were supplied by the company.
Kuaishou said the completed subscriptions represented a deemed disposal of interests in Beijing Kling while leaving the company in control. Investors were also granted redemption rights under specified conditions. The filing says an investor may seek a repurchase if Beijing Kling does not complete an initial public offering by the earlier of an agreed latest listing date or October 30, 2031. Any repurchase would include the original investment price plus an annual return of 8 percent calculated on a simple-interest basis, subject to the agreement’s terms.
New investors take over commitments
The completion filing disclosed several assignments of existing commitments. Kingdee Software China agreed to inject RMB300 million, Gongqingcheng Junke Investment Partnership RMB200 million, and MetaX Shuzhi Technology Shanghai a combined RMB100 million through two assignments.
Other assignees included Wenzhou Ruida, Ningbo Zhichun Huayan and Tianjin Yuanfeng. Kuaishou said two investors, Dakang Lanwu and BFI MIDCO, could not complete remaining payments within the required period. Beijing Kling therefore terminated the relevant portions, covering RMB100 million and $80 million, respectively. The company attributed the terminations to objective reasons not attributable to any party.
The final investor table also names Alibaba Cloud’s Hangzhou AliCloud Apsara Information Technology, Baidu’s Beijing Baidu Netcom Science Technology, the China Artificial Intelligence Industry Investment Fund, the China Internet Investment Fund and a Tencent-controlled investor group among the participants. Individual stakes are small, while the investor base spans internet platforms, chip companies and public-sector capital.
Financing follows rapid commercialization
Kling AI competes in the fast-growing market for generative video models. In Kuaishou’s second-quarter 2026 results, the company said Kling AI generated more than RMB850 million of revenue during the quarter, up more than 200 percent from a year earlier. That growth helped lift Kuaishou’s other-services revenue, which includes e-commerce and Kling AI, to RMB6.2 billion.
The company also said Kling AI had rolled out native 4K output, a faster version of its video model, and developer tools for automated content creation.
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Kuaishou Technology Announces Second Quarter and Interim 2026 Unaudited Financial Results