Chinese tech company Kuaishou Technology is considering spinning off its AI video-generation unit Kling AI for a separate initial public offering next year, according to market sources, as investor enthusiasm surrounding AI continues to fuel demand for AI-related stocks. The company has reportedly begun discussions with potential investors over a pre-IPO fundraising round for Kling AI, which is said to be valued at around $20 billion.
Kuaishou has not yet commented on the matter. Launched in 2024, Kling is Kuaishou’s flagship AI model for video generation and quickly gained attention in China’s fast-growing generative AI sector. The model takes a technical approach similar to OpenAI’s Sora, while adding in-house developments, and is generally considered to perform at a comparable level. [TechWeb, in Chinese]