Kling AI closes RMB 19.8 billion funding round with state and technology investors
The AMW Read
The closing updates a previously reported funding announcement, while the approximately $2.9 billion round signals capital concentration in AI video.
Kling AI closes RMB 19.8 billion funding round with state and technology investors
Kling AI has completed a capital increase totaling approximately RMB 19.8 billion, or $2.9 billion, according to a Sohu report citing a Kuaishou Hong Kong exchange announcement. Investors include CPE, China's National AI Industry Investment Fund, Tencent, Alibaba Cloud and Baidu. The report says all investors paid their subscriptions and the transaction closed. It follows AI Market Watch's August coverage of an approximately $3 billion funding announcement; the available details do not establish whether the reports describe the same round.
The financing places a major pool of state, technology and entertainment capital behind a video-generation model provider. It also gives Alibaba Cloud, Tencent and Baidu stakes in a business associated with Kuaishou. The report says Kling AI generated more than RMB 850 million in revenue in the second quarter of 2026, up more than 200% year over year. Those company figures indicate commercial traction, though they do not establish profitability or the economics of serving video models.
For investors and builders, the next test is whether revenue growth can support the costs of competing in video generation. Kling 4.0 arrived in October, following Kling 3.0's native 4K output, according to the report. The company says it serves more than 50,000 enterprises, but the report does not disclose their spending or retention. It also describes an IPO as analyst speculation, not an announced filing or plan.
