Baidu is preparing to spin off its AI chip subsidiary into a standalone public company. Kunlunxin (Beijing) Technology, the chip unit Baidu has been quietly building since 2012, filed a listing application on the Hong Kong Stock Exchange around January 2026, with a secondary listing on Shanghai’s STAR Market also on the table.
The valuation targets tell you everything about the current mood around AI hardware. The Hong Kong listing is targeting a valuation of as high as $50 billion. The Shanghai STAR Market version carries a more conservative ambition of around RMB 100 billion, roughly $14.7 billion. For context, Kunlunxin was valued at approximately RMB 21 billion, or $3 billion, following a fundraising round earlier in 2025.
From Baidu’s back office to a $50 billion bet
Kunlunxin started in 2012 as an internal Baidu initiative to develop AI chips for Baidu’s own data center capabilities.
As of 2025, roughly half of Kunlunxin’s revenue comes from external customers, meaning it has successfully made the transition from captive supplier to commercial vendor.
