A general view of the Baidu logo is seen at the Shanghai New Expo Center during the World Artificial Intelligence Conference 2025 in Shanghai, China, on July 28, 2025.
Ying Tang | Nurphoto | Getty Images
Hong Kong-listed shares of Baidu surged more than 7% Monday on reports that its artificial intelligence chip unit Kunlunxin is targeting an initial public offering in the city, which could value its affiliate at $50 billion.
Prospective investors were asked to buy semiconductors worth three to seven times the value of their intended investment in Kunlunxin’s planned listing, The Information reported Sunday, citing two sources familiar with the matter.
Baidu confidentially filed a listing application for Kunlunxin on the Hong Kong Stock Exchange at the start of the year, though offering details, including size and structure, were undecided then.
Kunlunxin chips have drawn interest from ByteDance, the owner of TikTok, according to an earlier Reuters report citing sources.
Founded in 2011, Kunlunxin mainly supplies chips to its parent company Baidu. While Baidu retains a controlling stake, the company operates independently and has broadened its scope to external sales over the past two years.
The report comes as China accelerates efforts to strengthen its position in the increasingly competitive AI sector.
“Despite Chinese progress, the United States remains for now ahead in the race for dominance over the so-called artificial intelligence hardware stack – the resources and equipment, especially semiconductors, needed to run AI models,” according to a report by Brussels-based economic think tank Bruegel.
However, the think tank also noted that “the signs of Chinese catch-up are real,” citing factors such as an open-sourced toolkit with a state-backed contributor pipeline and a large enough domestic market that could buoy the ecosystem through its immature phase.