Kuaishou's Kling AI Closes Roughly RMB 19.8B Capital Increase

On July 2, 2026, Kuaishou Technology announced on the Hong Kong Stock Exchange that it would restructure its Kling AI business and bring in external investors through Beijing Kling. The round was capped at 204.47 billion CNY, with a pre-money valuation of roughly 150 billion USD and a potential post-money valuation of around 180 billion USD (about 1200 billion CNY). At that stage, 190.48 billion CNY was already confirmed, with participants including Alibaba, Tencent and Baidu, plus state-backed funds such as the Beijing Information Industry Development Investment Fund, the Beijing AI Industry Investment Fund and the Yangtze River Delta Digital Intelligence Cultural Industry Private Equity Investment Fund. On September 30, Gai Kun (also known as Yu Yue), previously head of Kuaishou's community science line, moved to the role of director and CEO of the Kling AI company.

On October 30, Kuaishou announced that all conditions under the capital increase agreement for Beijing Kling had been met and the share purchase had closed. Total capital contributions actually paid by all investors came to about 198.0184 billion CNY (about 29.0533 billion USD). The closing amount fell roughly 6.45 billion CNY short of the 204.47 billion CNY cap because Dakang Lanwu and BFI MIDCO missed the scheduled payment deadline; Beijing Kling terminated the capital contributions they had planned to make, 100 million CNY and 80 million USD respectively, while all other investors had paid in full. The final shareholder list spans state funds, internet platforms, industry capital and market-oriented institutions, among them Shanghai Guofang Digital Technology with 1.69 billion CNY, the National AI Industry Investment Fund with 1.4 billion CNY and Alibaba Cloud with about 1.363 billion CNY.

Following the closing, controlling shareholder Lucky Labs holds 66.68% of the equity and 52.45% of the voting rights. Cheng Yixiao, co-founder, chairman and CEO of Kuaishou Technology, holds 1.01% of the equity and 0.79% of the voting rights, while Beijing Kling director and CEO Gai Kun holds 3.02% of the equity but enjoys 23.72% of the voting rights through a special share arrangement. With the share purchase completed, the independent financing round for Kling AI has now been fully closed.