Klei Entertainment Inc. (/kleɪ/ KLAY[2]) is a Canadian video game development company located in Vancouver, British Columbia.

[3] Prior to the formation of Klei, Cheng worked as a specialist AI programmer at Relic Entertainment, formerly owned by THQ.

[4] Cheng acquired seed funding for Klei by selling his THQ shares earned at Relic and getting a $10,000 loan from his brother.

Don't Starve was released in a 2-for-1 beta format on Steam, allowing players to purchase two copies of the game for the price of one.

Klei would remain in full control of its products, but the Tencent acquisition would help them reach the gaming market in China.