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Qilin AI Financing Rumors Return, Spotlighting Capital Struggles Behind $18 Billion Valuation
Competition in China’s AI video generation space is intensifying. On July 2, market rumors suggested that Kuaishou’s AI video platform, Keling AI, is close to closing its first independent funding round, with an estimated $3 billion in capital raised and a valuation of $18 billion. While Kuaishou has not commented on the financing details, the news has drawn widespread industry attention.
Looking at Keling AI’s valuation trajectory in recent months, market expectations have clearly been shifting and remain under debate. Since the spinoff financing plan was first announced in May 2026, valuation rumors have ranged from an initial target of $20 billion to later figures of $18 billion, $16 billion, and even $15 billion, with numbers frequently changing.
Industry analysts note that these ongoing valuation adjustments reflect a deeper shift in how the primary market evaluates AI investments. Investors and startups are now in a new round of pricing negotiations, where the market no longer simply pays a premium for technology stories, but instead focuses more rationally on reasonable valuations and viable market prospects.
Beneath this capital race, Keling AI faces a challenging competitive environment, particularly from strong players like ByteDance’s Seedance, which puts pressure on the platform’s market position and commercialization path. For Keling AI, still in a long-distance race, securing funding and strengthening its technological moat amid intense external competition will be decisive for its future direction.
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Competition in China’s AI video generation space is intensifying. On July 2, market rumors suggested that Kuaishou’s AI video platform, Keling AI, is close to closing its first independent funding round, with an estimated $3 billion in capital raised and a valuation of $18 billion. While Kuaishou has not commented on the financing details, the news has drawn widespread industry attention.
Looking at Keling AI’s valuation trajectory in recent months, market expectations have clearly been shifting and remain under debate. Since the spinoff financing plan was first announced in May 2026, valuation rumors have ranged from an initial target of $20 billion to later figures of $18 billion, $16 billion, and even $15 billion, with numbers frequently changing.
Industry analysts note that these ongoing valuation adjustments reflect a deeper shift in how the primary market evaluates AI investments. Investors and startups are now in a new round of pricing negotiations, where the market no longer simply pays a premium for technology stories, but instead focuses more rationally on reasonable valuations and viable market prospects.
Beneath this capital race, Keling AI faces a challenging competitive environment, particularly from strong players like ByteDance’s Seedance, which puts pressure on the platform’s market position and commercialization path. For Keling AI, still in a long-distance race, securing funding and strengthening its technological moat amid intense external competition will be decisive for its future direction.
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