In a significant move for the Asian tech landscape, Chinese internet behemoth Baidu Inc. has announced that its artificial intelligence chip subsidiary, Kunlunxin, has taken a major step towards becoming a publicly traded entity. The unit confidentially submitted a listing application to the Hong Kong stock exchange on January 1, setting the stage for a high-profile spin-off and initial public offering (IPO).
The Road to the Public Market
Kunlunxin's IPO filing follows a recent fundraising round that pegged its valuation at a substantial 21 billion yuan, equivalent to approximately $3 billion. This development was initially reported by Reuters, indicating the company's strategic preparations for the Hong Kong listing. While the finer details, including the final size and structure of the share offering, are still being ironed out, the confidential submission marks a pivotal milestone.
Founded back in 2012 as an in-house unit dedicated to crafting AI chips for Baidu's own use, Kunlunxin has evolved into an independently operated business. Despite this operational independence, Baidu will retain a controlling stake even after the proposed spin-off is completed, ensuring the parent company's continued influence. Historically focused on supplying Baidu, the chipmaker has actively broadened its customer base over the last two years, boosting external sales.
Amid a Surge in Chinese Semiconductor Listings
This move is not occurring in isolation. It is part of a broader wave of public market debuts by Chinese AI and semiconductor firms. The push is largely driven by China's national strategy to cultivate domestic alternatives to American semiconductors, a response to escalating export restrictions from Washington on advanced chip technology.
The trend is vividly illustrated by recent activities. Just this week, AI startup MiniMax disclosed its expectation to raise up to HK$4.19 billion (about $538 million) through its Hong Kong offering. Similarly, semiconductor designer Shanghai Biren Technology successfully secured HK$5.58 billion from its public offering. Furthermore, industry players like OmniVision Integrated Circuits and GigaDevice Semiconductor have commenced bookbuilding processes for their own IPOs, each targeting to raise around $600 million.
A Resurgent Hong Kong Market
Kunlunxin's listing bid coincides with a robust recovery for the Hong Kong stock exchange as a fundraising hub. Data from LSEG reveals that Hong Kong witnessed a remarkable resurgence in 2025, attracting $36.5 billion from 114 new listings. This performance marks the exchange's strongest year since 2021 and represents a more than threefold increase compared to the $11.3 billion raised in 2024. The influx of major tech and semiconductor listings is significantly contributing to this revival, highlighting the city's pivotal role in channeling capital to China's strategic tech sectors.
The confidential filing by Baidu's Kunlunxin unit underscores the intense activity and strategic importance of the semiconductor industry in China. As the company moves closer to its public debut, it joins a growing cohort of Chinese tech firms leveraging the Hong Kong market to fuel growth and advance the nation's ambitions in cutting-edge, self-sufficient technology.
