Kunlunxin is reportedly preparing for a blockbuster listing as China accelerates its push for AI and semiconductor self-reliance.
Baidu’s AI chip subsidiary Kunlunxin is reportedly preparing for a Hong Kong stock market listing that could value the company at around $50 billion, according to a report by The Information citing sources familiar with the matter.
The report said potential investors are being encouraged to commit to purchasing AI chips worth three to seven times the value of the IPO shares they plan to subscribe for, a strategy that could help strengthen Kunlunxin’s commercial customer base ahead of the listing.
Reuters could not independently confirm the reported valuation target, and Baidu did not immediately respond to requests for comment.
Kunlunxin has been gaining traction in China’s fast-growing AI hardware market. Reuters reported earlier this month that ByteDance was considering using Kunlunxin’s AI chips, while Tencent is already among its customers, according to a source cited in the report.
Baidu announced in January that Kunlunxin had confidentially submitted a listing application to the Hong Kong Stock Exchange, laying the groundwork for a spin-off and separate public listing.
The potential IPO comes as China’s technology sector experiences a revival in public offerings. Domestic tech listings are on pace for their strongest year since 2023, supported by Beijing’s push to strengthen the country’s semiconductor and AI industries and reduce reliance on foreign technology amid intensifying competition with the United States.
Originally established in 2011 as Baidu’s internal AI chip development unit, Kunlunxin has since become an independently operated business, although Baidu continues to hold a controlling stake. While Baidu remains its largest customer, the company has increasingly expanded sales to external clients over the past two years.
