Exceeding 19 billion, the largest single financing in the AI video industry is born, with investments from Alibaba, Tencent, and Baidu.

According to a report from Zhidx on July 3rd, last night, Kuaishou announced in a statement on the Hong Kong Stock Exchange that its video generation business, "Keling AI," will complete a financing round of no more than 20.447 billion yuan. Currently, the confirmed financing amounts to 19.048 billion yuan, with Alibaba, Tencent, and Baidu participating in the investment.

After the completion of this capital increase, Kuaishou's shareholding in Keling AI will drop from 100% to approximately 68.33%. Among the new investors, Alibaba holds 0.87%, Shanghai Qishan, a subsidiary of Tencent, holds 0.44%, and Baidu holds 0.22%. Additionally, several state-owned funds, such as the Beijing Information Industry Development Investment Fund, the Beijing Artificial Intelligence Industry Investment Fund, and the Yangtze River Delta Digital and Intelligent Culture Industry Private Equity Investment Fund, have also participated in the investment.

After July 2nd, Beijing Keling, an indirectly wholly-owned subsidiary of Kuaishou, is expected to hold the Keling AI-related assets and businesses of the Kuaishou Group after the completion of the restructuring.

According to the capital increase agreement, with the consent of Beijing Keling, additional investors can become contracting parties under the capital increase agreement by signing an accession agreement within 60 days from the signing date (or a longer period approved by investors holding more than 50% of the subscription amount). The total capital increase under the capital increase agreement shall not exceed 20.447 billion yuan, accounting for approximately 16.67% of the enlarged registered capital of Beijing Keling.

The currently confirmed financing includes: 21 independent investors, Party A, and Party B as initial investors, have agreed to inject 13.824 billion yuan in cash capital into Beijing Keling; 15 additional investors have agreed to inject 5.224 billion yuan in cash capital into Beijing Keling.

In terms of restructuring, Beijing Keling, Beijing Dajia, Huayihuilong, Beijing Kuaishou Technology, Lucky Labs, and Fortune Ever have entered into a restructuring framework agreement to enable Beijing Keling to hold the Keling AI-related assets and businesses of the Kuaishou Group. The restructuring is expected to be completed within 9 months after the latest payment date under the capital increase agreement. The financial operations of Beijing Keling will continue to be consolidated into Kuaishou's financial statements.

Regarding Keling AI-related assets and businesses, since the release of Keling AI 1.0 in June 2024, Keling AI has undergone more than 30 version updates. In terms of commercialization, it mainly provides paid subscription membership services for professional consumers and API services for enterprise customers.

As of December 31, 2025, the total assets, total liabilities, and net asset value of Beijing Keling were approximately 244 million yuan, 253 million yuan, and 9 million yuan respectively. In the years ended December 31, 2024, and 2025, Beijing Keling's unaudited net losses (before and after tax) were 500 million yuan and 1.9 billion yuan respectively.

As of December 31, 2025, Beijing Keling's revenue was approximately 1.1 billion yuan. In March this year, its annualized revenue run rate was approximately 500 million US dollars (3.395 billion yuan). Based on this, Kuaishou's management believes that the pre-transaction valuation of Beijing Keling is 15 billion US dollars (approximately 101.836 billion yuan).

In addition, Kuaishou also granted equity incentives to its employees for the first time.

The Kuaishou board of directors announced that on July 2nd, Beijing Keling will grant a total of 7.1651 million equity incentives and options to the company's key personnel, corresponding to approximately 7.1651 million yuan of Beijing Keling's registered capital. This is also the first time that Kuaishou Keling has granted equity incentives.

In this grant, 961,800 equity incentives have been granted to Cheng Yixiao, the executive director and chairman of Beijing Keling, at a zero price. Cheng Yixiao shall not dispose of these equity incentives for at least three years in the future and before the listing of Beijing Keling.

Earlier yesterday, the South China Morning Post reported, citing sources familiar with the matter, that Kuaishou is expected to initiate the listing process of Keling AI in Hong Kong within the next 12 months. The funds raised from the IPO will be used for the construction of computing power and data centers, as well as the recruitment and retention of talent.

Changes in Kuaishou Keling's equity

This article is from the WeChat official account "Zhidx" (ID: zhidxcom) . The author is Cheng Qian, and the editor is Yun Peng. It is published by 36Kr with authorization.