Kling AI raises $2.8B at $15B valuation, backed by Alibaba, Tencent, and Baidu
What's the deal? Kuaishou's video generation unit, Kling AIDealroom has a profile for this one. Try Dealroom →, has raised 19,048,000,000 yuan (≈$2.8 billion) in confirmed financing, with Alibaba, Tencent, and Baidu among the investors. The round values the business at $15 billion pre-money and could reach up to 20,447,000,000 yuan as more investors sign on.
Who's backing it? Alibaba holds 0.87%, Tencent subsidiary Shanghai Qishan holds 0.44%, and Baidu holds 0.22% of the enlarged capital. Several state-backed funds also joined, including the Beijing Artificial Intelligence Industry Investment FundDealroom has a profile for this one. Try Dealroom → and the Yangtze River Delta Digital and Intelligent Culture Industry Private Equity Investment Fund.
By the numbers: The round ranks in the top percentile of all growth equity deals recorded for the sector in China, making it the largest single financing for an AI video model company. Kuaishou's stake will fall from 100% to about 68.33% once the capital increase completes.
What's the endgame? Kuaishou is spinning off and capitalising its generative video business through Beijing Keling, which will hold the Kling AI assets after a restructuring expected to complete within nine months. Since launching Kling AI 1.0 in June 2024, the product has shipped more than 30 updates and sells subscriptions to consumers and API access to enterprises.
The financials: Beijing Keling reported roughly 1.1 billion yuan in revenue for the year ended December 31, 2025, with an annualised run rate of about $500 million (3.395 billion yuan) by March. Losses widened sharply, from 500 million yuan in 2024 to 1.9 billion yuan in 2025.
What could go wrong? The valuation rests heavily on a fast-growing revenue run rate against deepening losses. The financing is not yet fully closed — the balance beyond the confirmed 19,048,000,000 yuan depends on additional investors signing accession agreements within 60 days.
The signal: China's three largest internet platforms are co-investing in core AI video infrastructure rather than competing in isolation. Alongside Alibaba Cloud's separate 2 billion yuan round for Vidu maker ShengShu, the deal cements Kling as a national champion and sets a high valuation benchmark for a homegrown rival to tools like OpenAI's Sora.
