Kuaishou Moves to Spin Off Kling AI Video Unit, Targets 2027 IPO at $20B Valuation

Kuaishou Technology is preparing to separate its Kling AI video generation business into an independent entity, with plans for a public listing in 2027, according to sources with knowledge of the matter. The company is simultaneously engaging potential investors in pre-IPO funding talks anchored around a $20 billion valuation for the spinoff.

Kuaishou, the ByteDance rival that dominates China's short-video and livestreaming space, has positioned Kling as a centerpiece of its artificial intelligence strategy. The unit has gained traction among Chinese creators seeking AI-powered video production tools, emerging as a domestic counterweight to international offerings like OpenAI's Sora. By carving out Kling for a standalone listing, Kuaishou aims to unlock dedicated capital for its AI ambitions while potentially extracting a higher valuation multiple than a consolidated structure would allow.

The $20 billion valuation benchmark signals Kuaishou's conviction in the unit's growth trajectory, though investor appetite for a China-linked AI IPO in 2027 remains an open question. Regulatory dynamics in both Beijing and international markets, combined with ongoing scrutiny of Chinese technology listings, could reshape the timeline or terms of the listing. The pre-IPO funding talks represent an early test of institutional interest ahead of any formal public filing.