Private equity firm General Atlantic is in discussions to lead a major new funding round for Kling AI, the generative video unit of China’s Kuaishou Technology, one of China’s fastest-growing AI businesses ahead of a planned IPO, according to a report by Bloomberg.
The report cites people familiar with the discussions as revealing that Kling AI is seeking to raise more than $2bn at a post-money valuation of approximately $18bn. Earlier iterations of the fundraising had targeted valuations closer to $20bn, though expectations have since been recalibrated in line with investor appetite, the sources said.
The unit, which develops AI systems capable of generating short-form videos and films from text prompts, is part of Kuaishou Technology’s broader push into generative AI, where it competes with rivals including ByteDance’s Seedance and other emerging Chinese startups focused on professional and creative video production tools.
If completed, the transaction would represent a notable commitment from General Atlantic, an investor with a track record that includes early-stage backing of companies such as Meta Platforms Inc. and Uber Technologies Inc. It would also mark a relatively rare investment by the firm in China’s competitive and geopolitically sensitive AI sector.
General Atlantic has previously been an early supporter of Kuaishou’s larger competitor ByteDance, underscoring its long-standing exposure to China’s internet and technology ecosystem. The firm has reportedly not commented publicly on the current discussions.
The potential deal comes at a time of heightened regulatory and geopolitical scrutiny around cross-border technology investment. Recent months have seen increased attention from both US and Chinese authorities on foreign participation in advanced AI companies, particularly those with potential strategic implications.
Kuaishou is reportedly evaluating a restructuring of Kling AI to facilitate external investment ahead of a potential spinout and IPO, which is currently being considered for 2027, according to earlier reports.
