Kuaishou Technology is reportedly preparing to spin off its Kling AI video generation unit as an independent company, targeting a $20 billion IPO by 2027. This move positions Kling AI, launched in June 2024, as a major player in the AI video generation market, competing with OpenAI's Sora and Runway's video models. Kuaishou's market capitalization was approximately $25 billion as of April 2026. The spin-off aims to unlock an estimated $5 billion to $10 billion in additional shareholder value. If successful, Kling AI would become one of the most valuable standalone AI companies globally. However, the IPO faces potential challenges from China's unpredictable regulatory environment. Kuaishou has not publicly confirmed the IPO plans, initially reported by the South China Morning Post on May 5, 2026.