General Atlantic Eyes $2bn Stake in Chinese AI Firm Kling
US investor General Atlantic is in talks to lead a funding round for Chinese AI-video company Kling AI, seeking $2bn at a $18bn valuation. Beijing has warned AI firms to refuse US capital without clearance, making the deal risky. Kuaishou's Hong Kong shares jumped 8.9% on the news.
Key points
- General Atlantic is in talks to lead a funding round for Kling AI, a Chinese AI-video company, seeking $2bn at a $18bn valuation.
- Kling AI is the video arm of Chinese tech group Kuaishou, which has a planned stock-market listing.
- Beijing has ordered AI firms to refuse US capital without prior clearance, making the deal risky.
- Kuaishou's Hong Kong shares jumped 8.9% on the news, despite the risks involved.
- General Atlantic has a history of backing successful tech companies, including Meta and Uber.
General Atlantic, a US investment firm, is considering a significant stake in Kling AI, a Chinese AI-video company. Kling AI is the video arm of Kuaishou, a Chinese tech group that is planning a stock-market listing. The deal would see General Atlantic lead a funding round for Kling AI, seeking $2 billion at a valuation of $18 billion.
The timing of the deal is awkward, given Beijing's recent warnings to AI firms to refuse US capital without prior clearance. In April, Beijing ordered Meta to unwind its $2 billion takeover of Manus, a Chinese-founded AI startup. Since then, China has told leading AI firms to refuse US capital without clearance and has placed travel curbs on top AI researchers.
Despite the risks, Kuaishou's Hong Kong shares jumped 8.9% on the news, indicating investor interest in the deal. General Atlantic has a history of backing successful tech companies, including Meta and Uber. If the deal goes through, it would be a significant bet on Chinese generative AI.
The deal is still in its early stages, and there is no guarantee that it will go through on these terms. However, if it does, it would be a major development in the global tech landscape, with implications for the US-China tech rivalry.
Sources
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