Kuaishou-W Shares Surge at Open on Reports of AI Unit Spin-Off and Listing

Deep News05-12 09:42

Kuaishou-W (01024) shares opened sharply higher, gaining nearly 10% in early trading. At the time of writing, the stock was up 7.07% at HKD 55.25, with a turnover of HKD 22.43 billion.

On May 11, media reports indicated that Kuaishou Technology plans to spin off its Kling AI video business, targeting an IPO next year. The reports stated that Kuaishou has engaged in discussions with potential investors regarding a Pre-IPO financing round for Kling, which could value the AI unit at approximately $20 billion. Kuaishou has not officially commented on these reports. Morgan Stanley noted that if realized, this transaction could unlock significant value for Kuaishou, as the market typically assigns higher valuation multiples to pure-play AI companies.

Dongfang Securities pointed out that since the release of Kling's 1.0 version in June 2024, the Kling series of models has consistently maintained a leading position in the top tier of the competitive landscape, despite shifts caused by new model releases from competitors. The firm highlighted Kling's technical leadership. On pricing, a comparison of API costs for generating a one-minute video shows that Happyhorse-1.0, ByteDance's Seedance2.0, and Kuaishou's Kling 3.0 are priced at $14.4, $22.4, and $13.4, respectively. This positions Kling as offering superior value for money. Regarding feature iteration, Kling recently launched a 4K direct output function. Feedback from creators suggests this enhances its deliverability, particularly in demanding fields such as advertising and film production, where stringent quality requirements are paramount.

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