Baidu’s artificial intelligence chip division, Kunlunxin, is working toward a public stock offering in Hong Kong with an eye on a $50 billion valuation, according to a report published Sunday by The Information, which cited two people familiar with the matter.
As part of the initial public offering process, investors are reportedly being asked to purchase chips at a value between three and seven times what they plan to invest in Kunlunxin shares, the report indicated.
Reuters was unable to independently confirm the details of the report, and Baidu had not responded to a request for comment at the time of publication.
In a related development reported earlier this month, TikTok’s parent company ByteDance was said to be exploring the use of Kunlunxin chips, according to sources cited by Reuters. Additionally, one source indicated that Tencent is already a paying customer of Kunlunxin chips.
Back in January, Baidu announced that Kunlunxin had quietly submitted a listing application to the Hong Kong stock exchange, setting the stage for the chip unit to be spun off and listed separately from its parent company.
The planned IPO comes as technology stock offerings within China are on pace for their best year since 2023. Beijing has been actively encouraging listings of chip and artificial intelligence companies as part of a broader strategy to achieve technological independence in the face of its ongoing competition with the United States.
Kunlunxin was established in 2012 as an internal team within Baidu focused on developing AI chips. Over time, it evolved into an independently run operation, though Baidu still holds a controlling ownership stake. While the company has historically supplied chips primarily to Baidu, it has expanded its sales to outside customers over the past two years.
