Baidu’s AI chip unit Kunlunxin confidentially files for Hong Kong IPO
The Beijing-based firm has been valued at at least US$3 billion, according to sources
[HONG KONG] Baidu’s artificial-intelligence (AI) chip unit has confidentially filed for a Hong Kong initial public offering (IPO), kicking off what’s expected to be a busy year for listings by companies backing China’s technological ambitions.
The Beijing-based firm said a carve-out listing would better reflect the value of Kunlunxin and appeal to investors focused on general-purpose AI computing chips and related software and hardware systems. Kunlunxin submitted its application to the Hong Kong stock exchange on Friday, Baidu said, adding that details, including the size and structure of the IPO, have not been finalised.
Kunlunxin, which makes chips that power servers in data centres, has been valued at at least US$3 billion, sources familiar with the matter have said.
Competition around AI between China and the US is heating up, with Beijing intensifying a push to nurture future national champions in the industry, leading Chinese chip firms to line up for IPOs. Shanghai Iluvatar CoreX Semiconductor on Tuesday started taking investor orders for a HK$3.7 billion (S$472 million) Hong Kong IPO. Shares of Shanghai Biren Technology, an AI chip designer, jumped 82 per cent in their debut on Friday.
Kunlunxin was created in part to sate Baidu’s enormous appetite for computing power to run its online businesses. It is one of a few Chinese companies capable of designing the powerful accelerators essential for AI operations, and along with firms such as Huawei Technologies and Cambricon Technologies, is likely to be central to Beijing’s effort to wean the country off US technology such as Nvidia chips.
Baidu on Friday said that Kunlunxin’s separate listing would raise its profile among customers, suppliers and potential partners, allowing the unit to solicit more business and tap equity and debt capital markets for more funding.
Baidu shares rose 59 per cent in 2025. They rose as much as 5.9 per cent on Friday. BLOOMBERG
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