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.
Revenue for 2025 came in at approximately RMB 3.5 billion, about $500 million, and the company reached breakeven. Baidu retains around 58% ownership of the unit following the spin-off structure. The IPO timeline targets Q3 2026.
Why U.S. export restrictions are doing Kunlunxin’s marketing for it
U.S. export controls on advanced semiconductors, particularly those produced by Nvidia, have created a significant gap in the Chinese AI hardware market. The company has positioned itself as compatible with established AI software stacks, lowering the friction for potential customers considering a switch.
Baidu’s stock moved notably higher following the January 2026 filing announcement.
What investors should watch
The gap between the $3 billion fundraising valuation from 2025 and the $50 billion Hong Kong IPO target is enormous. The 50% external revenue figure is encouraging, but the absolute revenue number, $500 million for 2025, suggests Kunlunxin is still early in its commercial scaling journey. Hitting a $50 billion valuation on $500 million in annual revenue implies a price-to-sales multiple that would make even the most enthusiastic growth investor do a double take.
The dual-listing structure adds another layer of complexity. Hong Kong and Shanghai’s STAR Market serve different investor bases with different risk appetites and regulatory expectations.