Kunlunxin, the artificial intelligence (AI) chip unit of Chinese tech giant Baidu, is planning an Initial Public Offering (IPO) in Hong Kong. The move is fueled by China's strong push to develop domestic alternatives to advanced U.S. semiconductors, following escalating export restrictions by Washington.
Latest Valuation: Kunlunxin recently completed a fundraising round in the last six months, valuing the company at 21 billion yuan (approximately 2.97 billion), up from 18 billion yuan in its previous round.
The company raised over 2 billion yuan in this latest round from investors, including a China Mobile fund and other private investors. Kunlunxin aims to file a listing application with the Hong Kong Stock Exchange as early as the first quarter of 2026 and complete the IPO by early 2027.
The planned listing follows massive investor appetite for AI chip stocks, exemplified by Moore Threads, which recently debuted on the Shanghai Stock Exchange at over five times its IPO price.
Founded in 2012, Kunlunxin was initially an internal unit for Baidu but now operates independently, though Baidu retains a controlling stake.
The company projects its revenue to grow to more than 3.5 billion yuan this year (2025) and to achieve break-even. In 2024, it recorded a net loss of about 200 million yuan on revenue of approximately 2 billion yuan. Over half of Kunlunxin's revenue is expected to come from external sales in 2025, moving away from its primary role as a Baidu supplier.
The most advanced product, the P800 chip, is primarily supplying data center projects for state-owned firms and governments. Last month, the company unveiled two new chips: the M100 (inference-focused, launching early 2026) and the M300 (training and inference capable, slated for early 2027).
