Baidu’s AI Chip Unit Kunlunxin Nears $3 Billion Valuation, Eyes Hong Kong IPO
Baidu’s AI-chip unit Kunlunxin has reached a valuation of about 21 billion yuan (nearly US$3 billion) after a new funding round. The fresh investment also strengthens the company’s plan to pursue an IPO in Hong Kong.
According to people familiar with the matter, Kunlunxin may file for the listing in early 2026. If the process moves smoothly, the IPO could be completed by early 2027.
Strategic Context
China is pushing hard to grow its domestic chip industry, especially as U.S. export controls tighten. Because of these restrictions, many Chinese firms struggle to access high-end GPUs. As a result, demand for local AI-chip solutions continues to rise.
Kunlunxin is part of this shift. Moreover, the company is one of several Chinese AI-chip makers preparing for public listings as investor interest grows.
Company and Financial Snapshot
Kunlunxin began inside Baidu in 2012. It later became a more independent business, although Baidu still holds a majority stake.
In 2024, the company generated around 2 billion yuan in revenue but posted a 200 million yuan net loss. Even so, management expects revenue to exceed 3.5 billion yuan in 2025. They also aim to break even by the end of the year. In addition, more than half of next year’s revenue is expected to come from external customers.
A recent funding round raised over 2 billion yuan, including capital from a China Mobile-backed fund. This investment increased Kunlunxin’s valuation from 18 billion to about 21 billion yuan.
Product Pipeline
Kunlunxin’s most advanced chip today is the P800. It is already used in several government and state-owned data-center projects.
New products are also on the way.
- M100, an inference-focused chip, is scheduled for early 2026.
- M300, designed for both training and inference, should arrive in early 2027.
These chips aim to strengthen China’s position in AI computing.
Why This Matters
Kunlunxin’s rise highlights China’s growing focus on semiconductor independence. Because foreign chip access is becoming more limited, Chinese companies must build their own hardware capabilities. Therefore, firms like Kunlunxin play a crucial role in supporting the country’s AI ambitions.
For readers of 101sols.com, this story shows how China is reshaping its AI-infrastructure strategy while attracting strong interest from public-market investors.
