UAE's BlueFive Capital Co-Leads US$3B Funding Round for China's Kling AI

Hazem Ben-Gacem, BlueFive Capital Founder & Chief Executive

Abu Dhabi-based BlueFive Capital has co-led a nearly US$3 billion funding round for Chinese AI video generation company Kling AI, marking the largest single financing ever announced for an AI video generation model company.

The funding values Kling AI at approximately US$18 billion, underscoring investor confidence in the rapidly growing generative AI sector as demand for AI-powered content creation platforms continues to accelerate in 2026.

The investment was jointly co-led by BlueFive Capital, CPE, Guofang Investment, Tencent, and CITIC Securities, with participation from more than ten institutional investors, including Baidu and Alibaba Cloud.

For BlueFive Capital, the transaction reinforces its strategy of investing in foundational artificial intelligence technologies that are expected to shape the next generation of global digital infrastructure.

How Large Is the Kling AI Funding Round?

Metric	Value
Funding Raised	Nearly US$3 billion
Company Valuation	US$18 billion
Headquarters	China
Sector	AI Video Generation
Lead Investors	BlueFive Capital, CPE, Tencent, CITIC Securities, Guofang Investment
Additional Investors	Baidu, Alibaba Cloud, and 10+ institutional investors

The financing represents one of the largest private investments globally in generative AI and demonstrates continued investor appetite for AI infrastructure beyond large language models.

How Does This Investment Strengthen BlueFive Capital's China Strategy?

BlueFive Capital, which manages approximately US$15 billion in assets, has steadily expanded its presence in China since opening its Beijing office in 2025.

The firm has invested across several high-growth technology sectors, including:

• Artificial intelligence
• Robotics
• Autonomous driving
• Deep technology platforms

Its investment in Kling AI signals increasing confidence in China's AI ecosystem while strengthening relationships with leading Chinese institutional investors.

According to BlueFive Capital Founder and Chief Executive Hazem Ben-Gacem, participating in a funding round of this scale demonstrates the firm's ability to access highly competitive investment opportunities alongside some of China's largest technology and financial institutions.

Why Is This Deal Significant for the UAE's AI Investment Ecosystem?

The transaction reflects a broader trend of Gulf capital becoming increasingly influential in global artificial intelligence investment.

Over the past two years, Abu Dhabi has accelerated efforts to become an international AI investment hub through institutions and initiatives such as:

• ADGM, supporting international investment firms
• Hub71, fostering AI startup growth
• MGX, investing in frontier AI technologies
• G42, expanding AI infrastructure and sovereign AI capabilities

BlueFive Capital's participation alongside China's largest technology companies demonstrates how UAE-based investors are increasingly deploying capital into strategic AI assets across international markets.

What Will the New Capital Be Used For?

The proceeds are expected to help Kling AI:

• Expand commercial adoption of its AI video generation platform
• Accelerate product development
• Strengthen AI model capabilities
• Scale enterprise partnerships
• Increase global competitiveness in generative video technologies

The investment comes as competition among AI video generation platforms intensifies globally, with developers racing to improve video quality, inference speed, and enterprise applications.

What Did BlueFive Capital Say About the Investment?

Hazem Ben-Gacem described the transaction as an important milestone for BlueFive Capital's global technology investment strategy.

He noted that securing a strategic allocation in one of the world's largest AI funding rounds validates the firm's ability to access premier investment opportunities while strengthening relationships with sophisticated Chinese institutional investors.

Ben-Gacem added that Kling AI has demonstrated both world-class AI capabilities and a clear ability to commercialize its technology, making it a compelling long-term investment.

Why This Matters

BlueFive Capital's participation in Kling AI's US$3 billion financing highlights three major trends shaping the global AI investment landscape in 2026:

• Gulf investment firms are becoming increasingly active in international AI financing.
• China continues to attract large-scale private capital for frontier AI development.
• Investors are shifting beyond foundation models toward commercial AI applications, including AI-powered video generation.

As AI infrastructure investment continues to expand worldwide, cross-border partnerships between Gulf capital and Asian technology companies are likely to play an increasingly important role in financing the next generation of AI platforms.

 

 

FAQ

1. How much funding did Kling AI raise?
Kling AI raised nearly US$3 billion in its latest funding round, the largest financing ever reported for an AI video generation model company.

2. What is Kling AI's valuation?
Following the funding round, Kling AI is valued at approximately US$18 billion.

3. Who invested in Kling AI?
The funding round was co-led by BlueFive Capital, CPE, Guofang Investment, Tencent, and CITIC Securities, with participation from Baidu, Alibaba Cloud, and more than ten institutional investors.

4. Why did BlueFive Capital invest in Kling AI?
BlueFive Capital said the investment aligns with its strategy of backing foundational AI technologies while expanding its investment footprint in China's technology ecosystem.

5. Why is this funding round significant?
The investment is one of the largest AI financing rounds globally and highlights increasing collaboration between Gulf investors and China's artificial intelligence sector, reinforcing the UAE's growing role in global AI investment.