Kling AI Raises $3B, Valued at $18B in AI Video Funding

In a significant development for the generative AI video sector, Kling AI has successfully closed a substantial funding round, bringing in approximately $3 billion and achieving a post-money valuation of $18 billion. This monumental investment marks the largest single financing event to date for a company focused on AI-powered video creation, placing Kling AI directly in contention with established players like OpenAI, Google, and Runway.

The strategic capital infusion was co-led by prominent investment firms including BlueFive Capital, CPE, Guofang Investment, Tencent, and CITIC Securities. Further bolstering the round were contributions from major technology entities such as Baidu and Alibaba Cloud, alongside more than ten additional institutional investors, underscoring broad market confidence in Kling AI's technological advancements and commercial potential.

Kling AI's rapid ascent is further evidenced by its impressive financial performance. For the first quarter of 2026, the company reported revenues nearing $96 million (650 million yuan). This figure represents an extraordinary year-over-year expansion exceeding 300%, translating into an annualized revenue run rate of approximately $500 million. Such growth trajectory highlights the escalating demand for sophisticated AI video generation tools across various industries.

The company, incubated by the Chinese short-video giant Kuaishou, will see its parent entity retain a controlling stake of 68.33% following this financing. This strong backing from Kuaishou Technology provides a stable foundation as Kling AI navigates its next phase of expansion and technological development. The strategic alignment with Kuaishou likely offers significant advantages in terms of user access and content distribution.

With this robust financial backing and clear market traction, Kling AI is reportedly charting a course for a public listing on the Hong Kong Stock Exchange within the next twelve months. This move is anticipated to capitalize on the fervent investor appetite for cutting-edge AI technologies and the burgeoning market for AI-generated video content, which is transforming sectors from entertainment and advertising to media production.

The sheer scale of this funding round underscores a pivotal moment for generative video AI. Investors are demonstrating a strong belief in the commercial viability and transformative power of AI-driven video creation. As Hazem Ben-Gacem, Founder and CEO of BlueFive Capital, stated, securing a position in such a significant round validates the firm's capacity to identify and invest in premier opportunities within this dynamic technological frontier.