Baidu submitted a confidential application for the separate listing of its AI chip unit, Kunlunxin, on the Main Board of the Hong Kong Stock Exchange. The company seeks to unlock the business's value, attract a dedicated investor base, and broaden financing channels. Kunlunxin will remain a Baidu subsidiary following the IPO.
Kunlunxin develops high-performance data center chips for AI tasks. The unit recently raised over 2 billion yuan, a funding round that valued the company at approximately $3 billion.
The proposed listing requires approvals from the Hong Kong Stock Exchange and the China Securities Regulatory Commission (CSRC). Final decisions from both companies are also necessary. News of the IPO filing reportedly boosted Baidu's stock, which saw a jump of nearly 8%.