June 28 (Reuters) – Baidu’s AI chip unit, Kunlunxin, is planning to go public in Hong Kong at a target valuation of $50 billion, The Information reported on Sunday, citing two sources.
Investors have been asked to buy chips with a value three to seven times the worth of their planned subscription in Kunlunxin’s initial public offering shares, the report said.
Reuters could not immediately verify the report. Baidu did not immediately respond to a Reuters request for comment.
TikTok parent ByteDance was considering using Baidu’s Kunlunxin chips, Reuters had reported this month, citing sources. Tencent is already a Kunlunxin chip customer, according to one of the sources.
Baidu said in January that Kunlunxin had confidentially filed a listing application with the Hong Kong stock exchange, paving the way for a spin-off and separate listing.
China’s onshore technology IPOs are on track for their strongest year since 2023 as Beijing seeks to bolster listings of chip and artificial intelligence companies in a push for tech self-reliance amid the country’s rivalry with the U.S.
Founded in 2012 as an internal business unit developing AI chips for Baidu, Kunlunxin has since become independently operated, although Baidu retains a controlling stake.
Kunlunxin mainly supplies chips to Baidu but has expanded external sales over the past two years.
(Reporting by Preetika Parashuraman in Bengaluru; Editing by Mark Porter)