Chinese short-video platform Kuaishou Technology's (1024) shares once surged over 6 percent on Friday after announcing that its artificial intelligence arm is set to receive a US$3 billion (HK$23.4 billion) investment.
Kuaishou will sell a 31.67 percent stake in its unit Beijing Kling, which operates its large video generative model Kling AI, to venture capitalists and other investors, bringing its stake to 68.33 percent.
A total of 23 initial investors agreed to inject 13.82 billion yuan (HK$15.98 billion) in the funding round, while new investors could join within 60 days, with the maximum total fundraising amount at 20.44 billion yuan.
Kuaishou said that 15 additional investors plan to invest 5.22 billion yuan into Beijing Kling currently.
Its investors include two companies controlled by Tencent (0700), Alibaba's (9988) AliCloud, Baidu's (9888) unit and CITIC Securities' (6030) subsidiary.
The management considered that the pre-transaction value of Beijing Kling was around US$15 billion.
Earlier, Kuaishou said that it was seeking external financing and an independent listing for Kling AI. It reportedly plans to go public in Hong Kong in early 2027.
