Baidu's AI chip unit Kunlunxin targets $50 billion Hong Kong IPO: Report

Baidu's AI chip unit, Kunlunxin, is planning to go public in Hong Kong at a target valuation of $50 billion, The Information reported on Sunday, citing two sources.

Investors have been asked to ‌buy chips ⁠with ⁠a value three to seven times the worth of their ​planned subscription in Kunlunxin's initial public offering shares, the report ​said.

Reuters could not immediately verify the report. Baidu did not immediately respond to a Reuters request ​for comment.


TikTok parent ByteDance was ⁠considering using ‌Baidu's Kunlunxin chips, Reuters had reported this month, citing sources. Tencent is already a Kunlunxin ⁠chip customer, according to one of the sources.

Baidu ​said in January that Kunlunxin had ​confidentially filed a listing application with the Hong Kong stock exchange, paving the way for a spin-off and separate listing.

China's onshore technology IPOs are on track for their strongest year since ‌2023 as Beijing seeks to bolster listings of chip and artificial intelligence companies in ​a push ​for tech self-reliance ⁠amid the country's rivalry with the U.S.

Founded in 2012 as an internal business unit developing AI chips for ​Baidu, Kunlunxin has since become independently operated, although Baidu retains a controlling stake.

Kunlunxin mainly supplies chips to Baidu but has expanded external sales over the past two years.