Chinese technology giant Baidu has taken a major step toward unlocking value in its semiconductor business after confirming that its artificial intelligence chip unit, Kunlunxin, has confidentially filed for an initial public offering (IPO) in Hong Kong.
The Beijing-based company said a standalone listing would better reflect Kunlunxin’s value and attract investors focused on general-purpose AI computing chips, as well as the related software and hardware systems that power data centres and large-scale AI models.
Kunlunxin submitted its application to the Hong Kong Stock Exchange on Friday, although Baidu stressed that key details — including the size, valuation and structure of the IPO — have not yet been finalised.
Baidu shares surge on IPO news
The announcement was well received by the market. Baidu’s Hong Kong-listed shares jumped as much as 9% on Friday, reaching their highest level since September 2023. The stock has now climbed about 59% in 2025, reflecting growing investor confidence in the company’s AI strategy.
People familiar with the matter have previously valued Kunlunxin at at least $3 billion, underscoring the strategic importance of the unit within Baidu’s broader business.
China’s AI chip race heats up
The filing comes as competition between China and the United States in artificial intelligence intensifies, with Beijing ramping up support for domestic technology champions amid ongoing restrictions on access to advanced US chips.
Several Chinese semiconductor firms are lining up for IPOs:
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Shanghai Iluvatar CoreX Semiconductor recently began taking investor orders for a HK$3.7 billion Hong Kong listing.
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Shanghai Biren Technology, another AI chip designer, saw its shares surge 82% on debut this week.
Kunlunxin is among a small group of Chinese companies capable of designing the powerful AI accelerators required for modern machine learning workloads.
Strategic importance for Baidu and Beijing
Kunlunxin was developed in part to meet Baidu’s massive internal demand for computing power, which supports its search engine, cloud services and generative AI platforms.
Alongside companies such as Huawei Technologies and Cambricon Technologies, Kunlunxin is expected to play a central role in China’s drive to reduce reliance on US technology, including chips made by Nvidia.
Baidu said the separate listing would:
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Increase Kunlunxin’s visibility among customers and suppliers
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Strengthen partnerships across the AI ecosystem
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Enable the unit to raise capital independently through equity and debt markets
As China continues to prioritise technological self-sufficiency, Kunlunxin’s IPO is shaping up to be a key moment in the country’s rapidly evolving AI chip landscape.
