Baidu's artificial intelligence chip unit, Kunlunxin, is preparing for a Hong Kong initial public offering (IPO). The company has reportedly hired banks for the listing, which aims to raise as much as $2 billion.
Kunlunxin selected China International Capital Corp (CICC), Citic Securities Co, and Huatai Securities as lead banks. This information comes via a Bloomberg report.
The planned IPO advances Baidu's strategy to develop domestic AI chip capabilities and unlock value from core growth divisions. This follows Baidu's earlier intent to spin off the unit and occurs amid a competitive race among Chinese tech giants to secure advanced AI chips.
Following the report, Baidu's Hong Kong-listed shares rose 0.5%. This positive reaction occurred despite a declining broader market, indicating investor optimism about the potential value creation from the listing.