Kuaishou plans to spin off Keling AI and raise $2 billion at a valuation of $20 billion, with Tencent participating in the negotiations
According to an exclusive report by LatePost, Kuaishou plans to spin off its video generation large model business "Keling AI" and initiate a $2 billion financing round with an estimated valuation of about $20 billion. They are currently in talks with investors such as Tencent, and the deal has not yet been completed. Based on the current market value, Keling's valuation is already close to 70% of Kuaishou's overall market value.The report states that Keling's current annual recurring revenue (ARR) has reached $500 million, doubling since before the Spring Festival, significantly exceeding Kuaishou's previous expectations. At the beginning of 2025, Kuaishou set an annual revenue target of $60 million for Keling, but the final annual revenue reached $150 million. In the face of increased competition from giants like ByteDance and Alibaba in the video generation field, Kuaishou has established an independent option pool and special incentive mechanisms for Keling.It is reported that if the future IPO valuation reaches $40 billion, team incentives will be further enhanced. Currently, Keling has become one of the fastest-growing products in the global video generation field. By early 2026, it ranked first in the iOS drawing and design charts in nearly 40 countries and regions, including Brazil, Russia, and Singapore, and became one of the highest-grossing graphic design applications in South Korea and Russia.
