Kling AI Raises $2.8B at $18B Valuation as Western Rivals Retreat

Stepping Into a Global Void

The timing is deliberate. Ventureburn reports that OpenAI shut down the consumer version of its Sora app in April 2026, citing high computing costs and weak monetization, while Runway shifted away from commercial consumer video tools. Those retreats have left an opening that a heavily capitalized challenger is positioned to fill.

Kling AI says it intends to use the fresh funds for infrastructure and to recruit senior research talent internationally. As American firms reconsider their consumer video strategies, the company is aiming to capture global market share — potentially including emerging markets across Africa where demand for accessible generation tools is climbing.

Revenue Growth and an IPO on the Horizon

Unlike many AI startups running on promise alone, Kling AI is generating meaningful revenue. First-quarter 2026 revenue topped 650 million yuan (about $96 million), a roughly 300% jump year over year. Its annualized revenue run rate reached around $500 million in March, up from $300 million in January.

Much of that momentum followed the rollout of Kling 3.0, which produces 4K clips from text prompts and is gaining ground in film, advertising and online media. Kuaishou will dilute its stake to about 68% after the raise, and insiders say the company plans to pursue a Hong Kong listing targeted for mid-2027. Proceeds from the offering would fund data-center expansion and advanced hardware — the compute backbone required to serve a worldwide user base.