An overview of the Baidu logo seen at the Shanghai New Expo Center during the World Artificial Intelligence Conference 2025 held in Shanghai, China on July 28, 2025.
Ying Tan | Null Photo | Getty Images
Hong Kong listed stocks Baidu Shares soared more than 7% on Monday after reports that artificial intelligence chip unit Kunlun Xin is aiming for an initial public offering in the city, potentially valuing its affiliates at $50 billion.
The Information newspaper reported on Sunday, citing two sources familiar with the matter, that prospective investors were asked to buy semiconductors worth three to seven times their planned investment in Kunlun New’s listing plan.
Baidu confidentially submitted an application to list Kunlun New on the Hong Kong Stock Exchange at the beginning of this year, but details such as size and structure had not been determined at that time.
Kunlunxin chips are attracting interest from TikTok owner ByteDance, Reuters reported, citing sources.
Founded in 2011, Kunlunxin mainly supplies chips to its parent company, Baidu. Although Baidu retains control, the company operates independently and has expanded into external sales over the past two years.
The report comes as China accelerates efforts to strengthen its position in the increasingly competitive AI field.
“Despite China’s advances, the United States currently has the upper hand in the race for supremacy in the so-called artificial intelligence hardware stack, the resources and equipment needed to run AI models, especially semiconductors,” said a report by Brussels-based economic think tank Bruegel.
However, the think tank also noted that “signs of China’s catch-up are real,” citing factors such as open source toolkits with a pipeline of state-backed contributors and a large enough domestic market to overcome the ecosystem’s immaturity.
