Baidu’s AI Chip Subsidiary Kunlunxin Plans for Hong Kong IPO
Chinese internet titan Baidu witnessed a remarkable 12% surge in its shares on Friday, following the announcement of its intent to spin off its artificial intelligence chip subsidiary, Kunlunxin, and list it independently on the Hong Kong Stock Exchange. The company confidentially filed a listing application on January 1, 2026, marking a significant milestone in China’s pursuit of semiconductor self-sufficiency.
Established in 2012 as an internal Baidu unit, Kunlunxin specializes in chips designed for AI workloads. Baidu currently holds approximately 59% of the subsidiary, which was recently valued at 21 billion yuan ($3 billion) after a fundraising round. According to investment firm Jefferies, Kunlunxin could command a valuation between $16 billion and $23 billion upon independent listing, translating to roughly $9 billion to $13 billion in attributable value for Baidu.
This move aligns with China’s broader initiative to bolster its domestic chip industry amidst tightening U.S. export controls on advanced semiconductor technologies. Analysts at JPMorgan predict a sixfold increase in Kunlunxin’s chip sales to 8 billion Chinese yuan in 2026. The spin-off would enable Kunlunxin to access capital markets independently while remaining a Baidu subsidiary, thereby attracting investors with a specific interest in AI semiconductors.
Source: CNBC