Chinese tech company Kuaishou plans to take its Kling artificial intelligence video unit public in 2027, targeting a $20 billion valuation. The move signals a major bet on AI-generated content as the company seeks to capitalize on growing interest in video creation tools.
The $20 billion valuation target
Kuaishou's Kling AI unit, which develops tools that generate video clips from text prompts, is expected to list on an undisclosed exchange. The $20 billion price tag would make it one of the largest IPOs tied to generative AI if the timeline holds.
The company has not disclosed how much it aims to raise or which underwriters are involved. Kuaishou itself went public in Hong Kong in 2021 and has since faced intense competition in China's short-video market.
Kling AI's place in the market
Kling AI launched last year as a competitor to similar tools from other Chinese and international firms. The unit's technology allows users to create realistic short videos by typing descriptions, a field that has drawn heavy investment across the tech industry.
Kuaishou already integrates Kling's features into its main app, but spinning off the unit through an IPO would give it independent funding and a clearer focus. The 2027 target suggests the company is giving itself room to develop the technology and user base before hitting public markets.
What comes next
Kuaishou will need to file regulatory documents and select exchanges before the offering. The company has not announced a specific exchange or timeline for preliminary filings. Investors will watch for updates on Kling's revenue and user growth in the coming years.
