BEIJING, China — Chinese technology giant Baidu is preparing to list its artificial intelligence chip subsidiary, Kunlunxin, on the Hong Kong Stock Exchange in a move that could value the company at approximately $50 billion, according to a report by The Information citing people familiar with the matter.
The planned initial public offering (IPO) would mark one of the largest technology listings in Hong Kong in recent years, reflecting growing investor interest in China’s domestic semiconductor and artificial intelligence industries.
According to the report, potential investors have been encouraged to commit to purchasing AI chips worth between three and seven times the value of the shares they intend to subscribe for during the IPO. The arrangement is reportedly designed to strengthen commercial demand for Kunlunxin’s products while supporting the public offering.
AI chip business expands beyond Baidu
Kunlunxin was established in 2011 as Baidu’s internal AI chip development division before becoming an independently operated company, although Baidu continues to hold a controlling stake.
Initially focused on supplying processors for Baidu’s own artificial intelligence services and cloud computing infrastructure, the company has significantly expanded external sales over the past two years as demand for AI computing power continues to surge.
Among its major customers is Chinese technology giant Tencent, while reports earlier this month indicated that ByteDance, the parent company of TikTok, has also been evaluating Kunlunxin’s AI chips for future deployment.
Listing plans already underway
Baidu disclosed in January that Kunlunxin had confidentially submitted a listing application to the Hong Kong Stock Exchange, formally beginning the process for a spin-off and separate public listing.
Neither Baidu nor Kunlunxin has publicly confirmed the reported $50 billion target valuation.
China’s AI and semiconductor sector gains momentum
The proposed listing comes as China’s domestic technology sector experiences a revival in public offerings, driven by government efforts to strengthen the country’s semiconductor and artificial intelligence capabilities.
Chinese authorities have encouraged greater investment in locally developed chipmakers as Beijing seeks to reduce reliance on foreign technology amid ongoing strategic competition with the United States.
Technology-related IPOs on mainland Chinese exchanges are currently on course for their strongest performance since 2023, with AI, semiconductor and advanced manufacturing firms attracting increasing investor attention.
If completed at the reported valuation, Kunlunxin’s Hong Kong debut would rank among the most significant AI-related public offerings in Asia and further underline China’s ambition to build a globally competitive domestic AI chip industry.
