China’s National AI Fund Backs Video Generator Kling at $18 Billion Valuation as Cities Accelerate Infrastructure

China’s state-backed artificial intelligence strategy is expanding through direct equity investments in frontier model developers alongside coordinated municipal infrastructure pushes. Beijing Kling Technology Co., Ltd., the operator behind short-video giant Kuaishou’s generative video model Kling AI, completed a new equity funding round featuring the National Artificial Intelligence Industry Investment Fund and Charoen Pokphand Group’s investment unit, CP Robotics. The state-backed National AI Fund injected 1.4 billion yuan (approximately $197 million) in cash for a 1.14 percent stake, while CP Robotics contributed $19.29 million for a 0.11 percent equity share. The capital injection establishes a post-money valuation for Kling AI of…