A $2.8B financing round has put a hard number on the AI video race. Kling, the generative video unit of Kuaishou Technology, is now valued at about $18B as its parent prepares a possible spinoff and Hong Kong listing.

According to WSJ/Dow Jones, Kuaishou said late Thursday that outside investors had injected 19.04B yuan, or about $2.8B, into Kling. The article was timestamped July 3, 2026 at 02:43 UTC, placing it inside this curation window. Additional investors could still join and lift the round to as much as $3B; at that level, Kuaishou’s ownership could fall to 68.33%.

The investor list points to strategic pressure as much as financial appetite. CPE, Guofang Investment, BlueFive Capital, Tencent, and Citic Securities led the round. Tencent’s participation is notable because it has its own AI and media ambitions, yet still wants exposure to Kling as China’s generative video market consolidates.

Kling builds AI models for producing movies, advertisements, and social-media clips from prompts and other inputs. Its competitive set includes Google, Runway, and ByteDance’s video tools. The category remains expensive to run and unevenly monetized, but Kling has won attention through frequent product updates and affordable pricing.

The funding also changes the corporate story around Kuaishou. A separately capitalized Kling gives investors a cleaner way to price AI video without valuing it only as a feature inside a short-video platform. For Kuaishou, the structure keeps majority control while adding outside capital and a potential public-market path.

The next test is whether the $18B valuation can be supported by durable revenue rather than excitement around model demos. Generative video still has unresolved questions around compute cost, copyright exposure, professional workflow adoption, and competition from larger platforms. Even so, this round shows that Chinese AI video has moved from product race to capital-market event.

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Kling’s $2.8B raise puts an $18B price on China’s AI video race