Chinese technology firm Kuaishou Technology is planning to potentially spin off its AI video-generation division, Kling AI, for a separate initial public offering (IPO) next year, according to market insiders. This move is driven by growing investor enthusiasm for AI, which continues to boost demand for AI-related stocks. Reports indicate that Kuaishou has initiated talks with prospective investors regarding a pre-IPO fundraising round for Kling AI, with the unit reportedly valued at approximately $20 billion. Kuaishou has yet to make an official statement on this development.

Established in 2024, Kling serves as Kuaishou’s premier AI model specializing in video generation and has rapidly attracted attention within China’s rapidly expanding generative AI market. Technically, the model employs an approach similar to OpenAI’s Sora, enhanced with proprietary in-house innovations, and is widely regarded as performing at a comparable level. [TechWeb, in Chinese]