Baidu's $3B AI chip spinout Kunlunxin plans dual listing

Baidu's AI chip company Kunlunxin is pushing ahead with a dual listing plan. According to Bloomberg, a filing by CICC (China International Capital Corporation) with the China Securities Regulatory Commission shows Kunlunxin is seeking an IPO on Shanghai's STAR Market, the tech-focused board. The company was also reported to have confidentially filed for a Hong Kong listing earlier this year.

Kunlunxin was originally spun out of Baidu to provide computing power for its AI business, and Baidu still holds a 58% stake. In a report last December, Kunlunxin was valued at at least $3 billion. Jefferies analysts expect the Hong Kong IPO to close in the third quarter of this year, while a STAR Market listing would make it easier to tap domestic investors.

Recently, the launch of new-generation large models from companies like DeepSeek and ByteDance has significantly boosted demand for domestic inference chips. Riding that wave, investor appetite for homegrown chip companies has surged. Alibaba is reportedly also considering spinning off its chip division for a listing.