Baidu's AI chip division, Kunlunxin, is planning an initial public offering in Hong Kong, according to a Reuters report. This move follows a recent funding round that valued the unit at approximately 21 billion yuan (around $3 billion). Kunlunxin reportedly aims to file for the listing as early as the first quarter of 2026 and complete the IPO by early 2027. The news was met with a strong positive market reaction. Baidu's Hong Kong-listed shares surged as much as 7.8% on the day, marking their biggest single-day percentage gain since September 17. The planned IPO highlights investor interest in China's homegrown semiconductor industry as it aims to compete with US technology.