Baidu Weighs Spinoff of AI Chip Unit for Independent Listing
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Founded in 2011, Kunlunxin began mass production of its second-gen 7nm chip in 2021 and recently launched a third-gen chip for its P800 accelerator cards
Baidu Inc. is weighing a spinoff and separate initial public offering of its artificial intelligence chip unit, the company confirmed Sunday, following weeks of speculation surrounding one of its most strategically valuable businesses.
In a filing to the Hong Kong Stock Exchange on Dec. 7, Baidu said it is exploring the possibility of spinning off and listing its non-wholly owned subsidiary, Kunlunxin (Beijing) Technology Co. Ltd. The company cautioned that the plan is still under evaluation and would require regulatory approval, with no guarantee of execution.
Shares of Baidu rose 3.5% in Hong Kong trading Monday, closing at HK$125.8 ($16.2).
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- Baidu is considering spinning off and publicly listing its AI chip unit, Kunlunxin, though the plan is still under evaluation and needs regulatory approval.
- Kunlunxin has grown rapidly, securing a $141 million contract from China Mobile and serving over 100 clients, partly due to U.S. sanctions on Nvidia.
- The unit's success has boosted Baidu’s shares by over 40% since September, despite declines in its main online advertising revenue.
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Who’s Who
- Baidu Inc.
- Baidu Inc. is exploring a spinoff and separate initial public offering for its artificial intelligence chip unit, Kunlunxin. This move aims to allow Kunlunxin to independently raise capital and expand its customer base. Baidu's shares have been boosted by Kunlunxin's performance, helping to offset declines in its online advertising business. Baidu is also developing new AI chips, the M100 and M300, to be built using a domestic supply chain.
- Kunlunxin (Beijing) Technology Co. Ltd.
- Kunlunxin (Beijing) Technology Co. Ltd. is Baidu's artificial intelligence chip unit, founded in 2011. It has mass-produced 7-nanometer chips and recently launched a third-generation chip for its P800 accelerator cards. Kunlunxin has over 100 clients, including China Mobile, and is known for its compatibility with Nvidia's software ecosystem, offering a competitive advantage in the AI accelerator market. Baidu is considering a spinoff and separate IPO for the unit.
- Nvidia Corp.
- Nvidia Corp.'s advanced H20 chips are barred from entering the Chinese market due to U.S. sanctions. This has allowed Baidu's Kunlunxin to gain momentum. Analysts suggest that Kunlunxin's platform is more compatible with Nvidia's software ecosystem compared to Huawei's homegrown Ascend, which could reduce client costs.
- China Mobile
- China Mobile awarded a 1 billion yuan ($141 million) contract to Kunlunxin, Baidu's AI chip unit, in August. This indicates China Mobile is a client utilizing Kunlunxin's products.
- Moore Threads Technology Co. Ltd.
- Moore Threads Technology Co. Ltd. is a Chinese AI chipmaker that is either newly public or preparing for a public listing. This indicates a growing trend of Chinese AI chip companies entering public markets, likely encouraged by relaxed listing rules in Shanghai.
- MetaX Integrated Circuit Co. Ltd.
- MetaX Integrated Circuit Co. Ltd. (沐曦集成电路) is a Chinese AI chipmaker. The company is either preparing for a public listing or has recently debuted, indicating its presence in China's increasingly receptive public markets for AI chipmakers.
- Huawei Technologies Co. Ltd.
- Huawei Technologies Co. Ltd. is a rival of Kunlunxin, facing heavy sanctions. Unlike Kunlunxin, Huawei's homegrown Ascend platform is mentioned as being less compatible with Nvidia's software ecosystem, which could impact client costs.
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What Happened When
- 2011：
- Kunlunxin was founded.
- 2021：
- Kunlunxin mass-produced its second-generation 7-nanometer chip.
- Aug. 2025：
- Kunlunxin secured a 1 billion yuan ($141 million) contract from China Mobile and announced its products are used by more than 100 clients.
- By Sept. 2025：
- Baidu's mainstay online advertising business revenue declined 15% and 18% in the second and third quarters, respectively.
- Since Sept. 2025：
- Baidu’s shares have increased by more than 40%, attributed to Kunlunxin’s performance.
- Nov. 2025：
- At its annual conference, Baidu unveiled a five-year chip roadmap including M100 and M300 AI chips.
- By Dec. 7, 2025：
- Kunlunxin launched its third-generation chip integrated into P800 accelerator cards.
- Dec. 7, 2025：
- Baidu filed with the Hong Kong Stock Exchange, stating it is exploring a spinoff and separate IPO of Kunlunxin.
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