Kuaishou's video generation unit Kling AI is closing an external funding round of up to $3 billion (~CNY 20.38 billion), achieving a post-money valuation of $18 billion (~CNY 122.3 billion), with Tencent participating as an investor. The valuation has been trimmed from the initial $20 billion target set in April this year. According to a July 1 report by the South China Morning Post citing sources, the funding round is nearing completion. Kuaishou expects to initiate the Hong Kong listing process for Kling AI within the next 12 months, with IPO proceeds primarily earmarked for computing infrastructure and data center construction, as well as attracting and retaining top-tier talent. Kling AI's annualized recurring revenue (ARR) had reached $500 million, five times the level of the same period a year earlier. In the first quarter of this year, Kling AI's revenue exceeded CNY 650 million (approximately $95.8 million), representing year-on-year growth of over 300%. Approximately 75% of Kling AI's revenue comes from overseas markets, and its global user base has surpassed 100 million.