Baidu plans Hong Kong IPO of AI chip unit Kunlunxin in spin-off move
CNBC••business
Key Points:
- Baidu plans to spin off its AI chip subsidiary Kunlunxin and list it on the Hong Kong Stock Exchange, aiming to attract sector-specific investors and expand financing options amid China's push for semiconductor self-sufficiency.
- Kunlunxin, founded in 2012 and majority-owned by Baidu, designs AI chips used in data centers and cloud computing, with increasing external sales and projected revenue exceeding 3.5 billion yuan ($500 million) last year.
- The spin-off requires regulatory approval and is part of Baidu's strategy to highlight Kunlunxin's standalone potential while maintaining it as a subsidiary, reflecting broader trends of Chinese chipmakers seeking public listings.
- Kunlunxin's chips are praised for software compatibility and practical use in China
