Dec 5 (Reuters) – Kunlunxin, the AI chip unit of Chinese language web search large Baidu, is planning an preliminary public providing in Hong Kong, having just lately accomplished a fundraising that valued it at 21 billion yuan ($2.97 billion), three individuals accustomed to the matter informed Reuters.
The transfer comes as China pushes to develop home options to U.S. semiconductors amid escalating Washington export restrictions on superior chips, and follows a number of different Chinese language AI chip corporations eyeing public market debuts.
In an indication of huge urge for food for AI chip shares, on Friday Moore Threads, which makes graphics processing models (GPUs) used for synthetic intelligence computing, debuted on the Shanghai Inventory Alternate at greater than 5 instances its IPO value.
Funding supplies reviewed by Reuters confirmed that Kunlunxin needed to finish an IPO by early 2027. Two of the sources stated the corporate was speaking that it goals to file an inventory software to the Hong Kong Inventory Alternate as early as the primary quarter of 2026.
Kunlunxin accomplished its newest funding spherical previously six months, elevating over 2 billion yuan from a China Cell fund and different non-public buyers, the 2 individuals and a 3rd supply stated.
The spherical valued Kunlunxin at round 21 billion yuan, up from 18 billion yuan in its earlier fundraising, the individuals stated.
The sources declined to be recognized as the knowledge is just not public. Baidu didn’t tackle questions concerning the IPO plan.
Creating home GPU capabilities has grow to be essential for Beijing because the U.S. has tightened restrictions on exports of superior semiconductors to China, together with barring gross sales of Nvidia’s newest chips.
Kunlunxin joins a wave of Chinese language chip corporations planning public listings. Following Moore Threads’ itemizing, MetaX is anticipated to debut in coming weeks.
Biren Know-how, which has been blacklisted by the U.S., can also be planning a Hong Kong itemizing, Reuters reported in June.
EXPANDING BEYOND BAIDU
Based in 2012 as an inside enterprise unit growing AI chips for Baidu, Kunlunxin has since grow to be independently operated, although Baidu retains a controlling stake.
The corporate primarily equipped chips to Baidu however has step by step expanded exterior gross sales over the previous two years.
Kunlunxin expects its income to develop to greater than 3.5 billion yuan this yr and to realize break-even, in response to the funding supplies reviewed by Reuters.
In 2024, it booked a web lack of about 200 million yuan on income of round 2 billion yuan.
In 2025, over half of its income is anticipated to come back from exterior gross sales, in response to the primary two sources.