Key Points
- Baidu’s AI Chip Unit IPO: On January 1, 2026, Baidu (Baìdù 百度) submitted an A1 listing application to the Hong Kong Stock Exchange for its AI chip subsidiary, Kunlun Technology (Kūnlún Xīn 昆仑芯).
- Controlled Spin-off Strategy: Kunlun Technology will go public through a global offering (Hong Kong public offering and international placement) but will remain a subsidiary of Baidu, allowing Baidu to retain strategic control.
- Significant Valuation and Independence: Originally Baidu’s internal intelligent chip division, Kunlun Technology was spun out as a standalone entity in 2021 and was previously valued at approximately ¥13,000,000,000 RMB ($1.8 billion USD) in earlier funding rounds.
- Impact on Chinese Semiconductor Industry: This IPO is a calculated move in the intensifying AI chip arms race, aiming to meet domestic demand for high-performance computing from Chinese tech giants and foster strategic independence in semiconductor technology.
- Parent Company: Baidu (Baìdù 百度)
- Subsidiary Name: Kunlun Technology (Kūnlún Xīn 昆仑芯)
- Stock Exchange: Hong Kong Stock Exchange (HKEX)
- Application Date: January 1, 2026
- Listing Type: A1 Listing (Global Offering)
- Previous Valuation: ¥13 Billion RMB (~$1.8 Billion USD)
China’s tech landscape just got more interesting.
Baidu (Baìdù 百度) just made a major strategic move that signals serious confidence in its AI chip ambitions.
The search giant officially submitted a listing application for Kunlun Technology (Kūnlún Xīn 昆仑芯), its AI chip subsidiary, to the Hong Kong Stock Exchange.
This isn’t just another corporate restructuring.
It’s a calculated bet on where the future of artificial intelligence hardware is heading.
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Breaking Down the IPO Plans
Here’s what’s actually happening:
Baidu submitted what’s called an A1 listing application through joint sponsors to the Stock Exchange of Hong Kong (HKEX).
The filing is currently confidential—meaning the full details are still being reviewed behind closed doors.
But we know the basic structure of how this will shake out.
The Global Offering Strategy
The spin-off plan is pretty straightforward when you break it down.
Kunlun Technology will go public through what’s called a global offering.
This offering will have two main components:
- Hong Kong public offering: Regular investors in Hong Kong can buy shares directly during the IPO.
- International placement: Institutional and professional investors globally get access to shares.
By splitting it this way, Baidu maximizes the potential investor base.
Hong Kong retail gets a shot, while the big money (venture funds, hedge funds, family offices) gets priority placement.
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What Happens to Baidu’s Ownership?
Here’s the key detail that separates this from a true spin-off:
After the IPO, Kunlun Technology will remain a subsidiary of Baidu.
Baidu won’t be exiting completely.
Instead, the company is essentially going public while staying under Baidu’s umbrella.
This is a hybrid approach—controlled spin-off is the technical term.
Baidu keeps strategic control while allowing public market investors to own a piece.
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The Kunlun Technology Story So Far
Kunlun Technology wasn’t born yesterday.
Originally, it was just Baidu’s internal intelligent chip division.
In 2021, Baidu made it independent—spinning it out as a standalone entity.
That decision reflected Baidu’s recognition that AI chips needed dedicated focus and resources.
The chip business moves fast, demands specialized expertise, and requires constant capital investment.
Better to have a team focused entirely on that mission.
Valuation and Previous Funding
In earlier funding rounds, Kunlun Technology hit a valuation of approximately ¥13,000,000,000 RMB ($1,811,260,000 USD).
That’s over $1.8 billion.
For context, that’s serious venture-scale valuations.
It puts Kunlun Technology in the same ballpark as other notable AI chip startups globally.
The fact that it’s now ready for a public market debut suggests the company has hit meaningful revenue and growth milestones.
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Why This IPO Matters for the AI Chip Industry
This filing isn’t happening in a vacuum.
Several macro trends are converging:
The AI Chip Arms Race
The global competition for AI computing power is intensifying.
Companies need specialized hardware to run large language models, train neural networks, and deploy inference at scale.
NVIDIA (Enshiwei 英伟达) has dominated globally, but China’s been building homegrown alternatives for years.
Kunlun Technology represents that domestic push.
Domestic Demand for High-Performance Computing
Chinese tech giants—from Alibaba (Ālībābā 阿里巴巴) to Tencent (Tengxun 腾讯) to ByteDance (Zijie 字节)—all need massive amounts of compute for their AI ambitions.
Having local chip suppliers reduces supply chain risk and keeps capital flowing within the ecosystem.
That’s a powerful tailwind for companies like Kunlun Technology.
Strategic Independence
By going public on HKEX rather than staying private or going public in the US, Kunlun Technology stays aligned with China’s tech priorities.
It signals that this is Chinese chip technology for Chinese companies.
That message matters in the current geopolitical climate around semiconductors.
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The Bottom Line
Baidu’s decision to take Kunlun Technology public is a confidence play on AI chips.
The company believes demand for specialized AI computing hardware will continue growing.
The company believes its subsidiary can capture meaningful market share.
And the company believes Hong Kong investors are ready to back that vision.
Whether the IPO actually happens and how it performs will tell us a lot about the state of China’s semiconductor ambitions and the investor appetite for AI chip companies.
Keep watching this space—Kunlun Technology’s Hong Kong listing could be a significant marker in how the global AI chip market evolves over the next few years.
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