Baidu’s AI chip unit Kunlunxin targets $50B Hong Kong IPO

Baidu’s AI chip unit, Kunlunxin, ​is planning to go public in Hong Kong ‌at a target valuation of $50 billion.

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.

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 US.

Founded ​in 2011 ⁠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. Reuters