Baidu's artificial intelligence chip unit has secretly filed for an initial public offering in Hong Kong, kicking off what is expected to be a busy year for listings by companies supporting China's technological ambitions.
The Beijing-based company said the carve-out listing would better reflect Kunlunxin's value and appeal to investors focused on general-purpose AI computing chips and related software and hardware systems.
Baidu said Kunlun New filed an application with the Hong Kong Stock Exchange on Friday, adding that details such as the size and structure of the IPO have not yet been finalized.
Baidu's Hong Kong-listed shares rose as much as 9% on Friday, hitting their highest since September 2023. The stock price rose 59% in 2025.
Kunlunxin, which makes chips that power data center servers, is valued at at least $3 billion, the people said.
Competition in AI between China and the United States is intensifying, with China's leading semiconductor companies lining up for IPOs as the Chinese government steps up efforts to cultivate future domestic champions in the industry.
Shanghai Ilvatar CoreX Semiconductor Co. on Tuesday began accepting investor orders for its HK$3.7 billion ($472 million) Hong Kong IPO. Shares of AI chip design company Shanghai Bilian Technology Co., Ltd. soared 82% on Friday's debut.
Kunlunxin was created in part to satisfy Baidu's huge appetite for computing power to run online businesses.
The company is one of the few Chinese companies capable of designing the powerful accelerators essential to AI operations, and along with companies such as Huawei Technologies Co. and Cambricon Technologies Inc., it is likely to be central to Beijing's efforts to wean China away from U.S. technologies such as Nvidia chips.
Baidu said on Friday that Kunlun Xin's separate listing will increase its profile among customers, suppliers and potential partners, allowing the unit to attract more companies and raise more capital through equity and debt capital markets.
