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Analysis5 min read

Sora's API Shuts Down September 24. Kling Is Winning the Refugees, at a Cost Nobody Prices In.

Kling AI is a text-to-video and image-to-video generator built by Kuaishou Technology, priced by credits consumed per second rather than a flat subscription. Its Video 3.0 Omni model supports six-shot sequences, native lip-synced audio and 4K editing. Kuaishou is a Chinese company, so users routing sensitive client work through it accept exposure under China's National Intelligence Law.

The short version

OpenAI's Sora API shuts down September 24, 2026, and agencies are moving budget to Kling, whose credit pricing runs roughly 12 cents a second, well under Runway. Kuaishou raised $2.8 billion for Kling in July 2026 to keep undercutting. The tradeoff reviews skip: Kling is a Chinese company bound by a law that can compel data cooperation with the state.

OpenAI shut Sora's app down on April 26, 2026, and its API follows on September 24. The video generator absorbing the most displaced budget since isn't American.

That generator is Kling AI, built by Kuaishou, the Chinese company behind the short-video app Kwai. It now prices a second of 1080p video at roughly 12 cents on its subscription tiers, well under what Runway charges. That is cheap enough that a 100-video-a-month agency can run its entire monthly output for under $75.

The gap started mattering the day OpenAI put a shutdown clock on its own product. For a marketing team that built a workflow around Sora and now has five weeks left before the API goes dark, where that budget lands is not academic. It also turns on a tradeoff most of the reviews ranking for "Kling AI" never mention: price against a legal exposure baked into who owns the company.

What actually changed at Kling while Sora was dying

Kling shipped three real product jumps in the eight months Sora spent winding down. On December 21, 2025, Kling 2.6 added native audio, generating dialogue, sound effects and lip-synced speech in the same pass as the video, according to reporting by The Decoder. On February 5, 2026, its parent company launched Video 3.0 and Video 3.0 Omni, extending clips to 15 seconds and adding Multi-Shot, which stitches up to six connected camera angles into one generation with automatic transitions, per the press release carried on Nasdaq's wire.

A June 17, 2026 update pushed 4K support from generation-only into editing, so a clip shot at 4K can now be re-cut at 4K instead of downsampling.

None of that required a direct account with the parent company. Resellers including ModelsLab and Renderful sell pay-as-you-go access to the API with no waitlist and no subscription, at roughly $0.31 to $0.56 per five-second generation depending on the model version, according to Renderful's published rate card. A consumer plan buys none of that: the developer API and the web subscriptions run on separate credit pools that don't transfer, so an agency choosing this tool is really choosing between two different products wearing one brand name.

Who Kling is actually winning

The math is the pitch. For an agency generating 100 ten-second clips a month, the total runs about $70 against Runway's roughly $120 for the same volume, based on a comparison published by DigitalApplied.com in the weeks after Sora's shutdown. That is not a marginal saving on a discretionary line item. It is the difference between a video budget that survives a client's fourth-quarter cut and one that doesn't.

Kuaishou is not treating this as a side project. In July 2026, the company raised $2.8 billion, about 19 billion yuan, for the video business at a $15 billion pre-money valuation, with Tencent and Alibaba among the backers, according to TechStartups' report on the round. That is the largest single funding round any AI video company has closed.

It buys runway, the business kind, to keep undercutting on price while Runway the company chases a different customer entirely. Runway's roughly $300 million in 2025 revenue and its push into post-production for entertainment clients put it in competition for VFX and film budgets, not the volume social-ad work its Chinese rival is pricing for.

Who loses when Kling wins

Somebody's niche gets smaller when a frontier model starts selling multi-shot, lip-synced video for 12 cents a second. The most exposed is Pika, which built its identity specifically around fast turnaround for short-form social content and has grown to roughly 500,000 users on that pitch. That is almost exactly the job Kling's pricing and native-audio update now do at a lower cost per clip, backed by billions in fresh capital to keep undercutting.

The second casualty is quieter: freelance motion designers and boutique shops that charged per-video for short product ads and social spots. A client who used to pay $200 for a fifteen-second product clip now has a credible alternative that costs less than the freelancer's invoice for a single revision round.

That doesn't eliminate freelance work, since a generator still can't take creative direction the way a person can. But it collapses the price floor for the commodity end of that market, the exact segment OpenAI was serving with Sora before the economics stopped working: the company reportedly spent close to $1 million a day running that product against roughly $2.1 million in total lifetime revenue before pulling the plug.

The case against routing budget to a Kuaishou product

Here is the objection none of the "is Kling worth it" reviews raise. Its parent is incorporated in China, and China's National Intelligence Law obligates any Chinese organization to, in the law's own language, "support, assist, and cooperate with state intelligence work" on request, regardless of where the underlying data physically sits. The privacy policy also grants itself a broad, worldwide, sublicensable license to store and reproduce content users upload, and the models are required by the Cyberspace Administration to reject prompts touching a specific list of politically sensitive topics.

That would be a footnote if the business were mostly domestic. It reportedly is not: North American and European creators and brands generate roughly 75% of annualized revenue, according to Tech Times' reporting on the July funding round. That means the exposure sits with exactly the reader this article is written for, not some hypothetical foreign customer.

The honest answer is that risk scales with what is in the footage. Anonymized b-roll and stock-style product shots carry little real exposure. Client-confidential storyboards, unreleased product designs or anything under an NDA are a different calculation, and it is telling that a cottage industry of API resellers exists specifically to route traffic around a direct account with the parent, even though that routing doesn't change whose servers ultimately process the file.

What would prove this wrong

Watch what happens on the other side of September 24, 2026, when Sora's API actually goes dark. If Google DeepMind's Veo or Runway's enterprise tier cut per-second pricing to match this vendor before the end of the year, that is evidence the "default landing spot" claim in this piece is wrong and the market corrects back toward Western-hosted alternatives. If pricing instead holds through the fourth quarter, that confirms the Sora refugees are staying put on price alone, legal exposure included.

The next real test isn't video quality. It's whether a legal team signs off on routing brand assets through a company bound by a law that can compel it to hand data over on request, or whether that clause ends up in next year's vendor-risk memo instead.

Frequently asked questions

What is Kling AI and who owns it?

Kling AI is a text-to-video and image-to-video generator built by Kuaishou Technology, the Chinese company behind the short-video app Kwai. It launched globally in 2024 and reached its Video 3.0 Omni model in February 2026, adding multi-shot sequences and native audio.

How much does Kling AI cost compared to Runway?

Kling's subscription tiers price a second of 1080p video at roughly 12 cents, versus Runway's higher per-second rate. For an agency generating 100 ten-second clips a month, that works out to about $70 on Kling against roughly $120 on Runway, according to a 2026 comparison by DigitalApplied.com.

Is Kling AI safe to use for client or brand video work?

It depends on the content. Anonymized b-roll and generic product shots carry limited exposure, but Kuaishou is a Chinese company subject to China's National Intelligence Law, which can compel cooperation with state data requests regardless of where the footage is stored. Client-confidential or NDA-covered material should clear legal review before it touches Kling.

Why is Kling AI suddenly absorbing more users in 2026?

OpenAI closed Sora's app on April 26, 2026, and its API sunsets on September 24, 2026, forcing every team that built on Sora to migrate. Kling's lower per-second price and instant, waitlist-free API access have made it the default landing spot for that displaced volume.

What can't Kling AI do that Runway can?

Kling is built for fast, high-volume generation, not the deeper post-production and VFX-style editing that Runway has pushed into as it courts Hollywood and entertainment budgets. Consumer subscriptions and the developer API also run on separate, non-transferable credit pools, so a web plan doesn't grant API access.

Covered in this guide

  • Kling AI: Kuaishou's text-to-video platform with native 4K, lip-synced audio in 5 languages, and free daily credits. Used by 60M+ creators; plans from $6.99/month.
  • Kuaishou: Kuaishou Technology (HKEX:1024), founded 2011, runs China's second-largest short-video platform with 413M DAUs and created Kling AI, top-ranked video generator in 2026.
  • Pika: AI video generator by Pika Labs. Converts text and images into 1080p short-form clips in 30-40 seconds. Used by 500,000+ creators. Plans from $8/month.
  • Runway: AI to simulate the world through generative video and world models
  • Google DeepMind's Veo: Google DeepMind, Alphabet's AI research division formed in 2023, builds Gemini, AlphaFold, and Gemma with 8,000+ researchers across six continents.
  • OpenAI: OpenAI builds the GPT-5.6 model family (Sol, Terra, Luna), o3, ChatGPT (900M+ weekly users), and the OpenAI API. Closed a $122B round at an $852B valuation in March 2026, the largest private funding round in history.
  • Tencent: Chinese tech giant (founded 1998) with $500B+ market cap, developing Hunyuan foundation models, Tencent Cloud AI services, and AI integration across WeChat, gaming, and enterprise products.

Sources

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