Kuaishou

Kuaishou's artificial intelligence video arm, Kling AI, is seeking to raise around $3 billion in its first external fundraising round, as filed with Hong Kong Exchanges and Clearing. The funding round includes investors from Chinese technology companies, state-backed investment vehicles, and the entertainment industry, as first reported by the South China Morning Post.

Kuaishou shares fell after Tencent joined a $2.8 billion funding round for Kling AI's subsidiary. The investment involved Tencent and targeted Kling AI's business expansion.

Kling AI, backed by Kuaishou, is nearing a US$3 billion fundraising round valuing the company at US$18 billion post-investment. The valuation was reduced from an initial US$20 billion target set in April when Kuaishou planned to spin off Kling AI, reflecting market shifts in China’s AI video generation sector.

Kuaishou's chip spin-off TranStreams raised an undisclosed amount in a Series A+ financing round led by QF Capital. Chinese internet companies are expanding into semiconductor design to secure computing infrastructure amid AI growth and US export controls.

AI-generated dance videos produced by leading models failed to accurately replicate requested dances despite creating lifelike footage. Testing nine dance styles across four commercial AI models (Sora 2, Veo 3.1, Kling 2.5, Hailou 2.3) revealed inconsistencies in appearance and movement, with about a third of videos exhibiting abnormalities.