Baidu (BIDU) announced plans to spin off its artificial intelligence chip subsidiary Kunlunxin through a Hong Kong IPO, sending shares higher on Friday. While details of the offer size are yet to be decided, the Chinese tech giant filed a confidential listing application with the Hong Kong Stock Exchange. Baidu expects to maintain majority ownership of Kunlunxin following the spinoff, which still requires regulatory approvals.
The move reflects Beijing's push for semiconductor self-sufficiency amid escalating U.S.-China tech tensions. Washington has restricted access to advanced Nvidia (NVDA) chips for Chinese AI companies. At the same time, Beijing has mobilized billions in public funding for domestic chip development and encouraged state-owned enterprises to buy locally.
