Updated
Updated · CNBC · Jul 3
Kuaishou Shares Jump on $2.79 Billion Kling AI Raise as Tencent Invests $200 Million
Updated
Updated · CNBC · Jul 3

Kuaishou Shares Jump on $2.79 Billion Kling AI Raise as Tencent Invests $200 Million

3 articles · Updated · CNBC · Jul 3

Summary

  • Kuaishou shares climbed as much as 6.89% in Hong Kong after the company disclosed a 19 billion yuan ($2.79 billion) capital injection into AI unit Kling AI, though the stock later closed down 0.09% at HK$42.60.
  • Tencent is contributing $200 million to the round, which Bloomberg said targeted a $15 billion valuation for Kling AI and will dilute Kuaishou's stake to 68%.
  • The financing also drew 21 independent investors, underscoring strong demand for Chinese AI video-generation platforms as Kling pushes growth beyond its home market.
  • Kling AI launched in June 2024 and says it now reaches more than 60 million creators globally, giving Kuaishou a larger AI foothold alongside its 700 million monthly active users.

Insights

Why are Chinese tech rivals Tencent and Alibaba both investing in their competitor, Kling AI?
With 75% of revenue from overseas, can Kling AI break Silicon Valley's hold on the global generative AI market?