Baidu's AI Chip Arm Kunlunxin Eyes $50 Billion Valuation in Hong Kong IPO

Baidu’s AI chip subsidiary is heading to the Hong Kong stock exchange with a $50 billion price tag — and a requirement that some investors buy hardware along with their shares.

Kunlunxin, the chipmaker that started as Baidu’s internal AI processor R&D unit in 2012 before spinning out as an independent entity, filed its listing application with the Hong Kong Stock Exchange through joint sponsors in January. Baidu said at the time that Kunlunxin would remain a subsidiary after the split.

The $50 billion valuation target comes with an unusual condition attached. The Information reported Monday, citing sources, that some investors being courted for the IPO are being asked to purchase Kunlunxin chip products worth three to seven times the amount they plan to subscribe for in the offering. The information could not be independently verified, and Baidu did not immediately respond to requests for comment.

Kunlunxin’s customer base is starting to take shape. ByteDance is considering adopting the company’s AI chips, according to sources. Tencent is already a customer.

Baidu maintains its controlling stake in Kunlunxin, which was originally founded as an internal division focused on developing AI processors. The Hong Kong listing would give investors a rare public-market window into China’s homegrown AI chip sector — a market long dominated by Nvidia but increasingly drawing domestic competitors.