Baidu shares jump 7% as AI chip arm Kunlunxin said to target $50 billion Hong Kong IPO
A general view of the Baidu logo is seen at the Shanghai New Expo Center during the 2025 World Artificial Intelligence Conference in Shanghai, China, on July 28, 2025.
YingTang | Nurfoto | Getty Images
Shares listed in Hong Kong baidu It gained more than 7 percent on Monday on news that artificial intelligence chip unit Kunlunxin is targeting an initial public offering in the city.
Potential investors were asked to purchase semiconductors worth three to seven times the value of the intended investment in Kunlunxin’s planned listing, The Information reported Two sources familiar with the matter were quoted Sunday.
Baidu privately filed A listing application was filed for Kunlunxin on the Hong Kong Stock Exchange at the beginning of the year, but details of the proposal, including size and structure, were uncertain at the time.
Kunlunxin chips have attracted interest from TikTok owner ByteDance, according to an earlier report by Reuters, citing sources.
Founded in 2011, Kunlunxin mainly supplies chips to its parent company Baidu. While Baidu retains a majority stake, the company operates independently and has expanded its scope to include foreign sales in the past two years.
The report comes as China steps up efforts to strengthen its position in the increasingly competitive artificial intelligence sector.
“Despite China’s progress, the United States remains ahead for now in the race for dominance over the so-called AI hardware stack — the resources and equipment needed to run AI models, especially semiconductors,” according to a report from Brussels-based economic think tank Bruegel.
But the think tank also noted that “the signs of China catching up are real,” citing factors such as an open-source toolset with a state-backed contributor pipeline and a large enough domestic market that could stimulate the ecosystem in its nascent stage.
