Baidu, China’s biggest search engine company, often called the “Chinese Google”, is expected to hold an IPO of its chip unit, Kunlunxin Technology, in Hong Kong later this year. The information comes from the company’s financial director, Henry He, according to a report in the Wall Street Journal.
According to the newspaper, this IPO is part of a dual listing plan, which also includes an offering on the STAR Market, in Shanghai, the technological exchange inspired by the Nasdaq. He stated in an interview that Kunlunxin’s separation and IPO schedule remains on schedule, reinforcing that the transaction is progressing consistently.
The strategy of separating the chip unit aims to position Kunlunxin as a more “neutral” player in the market, which, according to the executive, should facilitate the attraction of external customers who may currently see it as excessively linked to the Baidu ecosystem. Furthermore, the stock market listing is seen as an important step to sustain the high investments required in research, development and hiring of talent specialized in semiconductors and artificial intelligence.
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He highlighted that Kunlunxin’s operation is financially sound and that the spin-off is not being conducted to alleviate cash pressure or reduce Baidu’s investment commitments. On the contrary, the movement is presented as a strategic lever to reinforce the company’s positioning in the global race for AI technologies and advanced chips.
According to the Wall Street Journal, the market has been following this project closely, as Kunlunxin is considered the centerpiece of Baidu’s attempt to reposition itself as an artificial intelligence company, and not just as an online search and advertising company. While the legacy advertising and search business shows signs of weakness, AI-linked revenues have grown strongly and gained weight within total revenue.
In He’s assessment, this trend should continue: AI solutions — especially language models, cloud services and applications based on proprietary chips — should support healthy growth in the group’s revenue in the coming quarters. He highlights that the company has been building a “complete track” of AI, ranging from chip development to large language models and physical AI applications (such as robots and smart devices).
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Despite this, the executive admits that there is room to improve the level of intelligence and sophistication of the company’s large language models (LLMs), in a scenario of fierce competition with other big techs and AI startups.
Baidu is not alone in its efforts. The Alibaba Group, for example, has been increasing its investment in AI, with the Qwen family of models being widely recognized within the developer community as one of the main lines of open source models on the market. At the same time, Chinese AI startups are also racing to gain space and capitalize on the favorable moment.
Wave of IPOs
Hong Kong has seen a wave of IPOs from AI and semiconductor companies recently. In 2026, language model companies such as Zhipu AI and MiniMax, as well as chip companies such as Biren Technology, have already debuted on the local stock market. This movement reinforces the perception that there is investor appetite for assets linked to the new wave of technology.
In this context, analysts cited in the report assess that a successful listing of Kunlunxin could help return Baidu to the level of “technology giant” in the eyes of the market, reinforcing its narrative of transformation into a company centered on AI. The majority expectation is that the listing in Hong Kong will take place in the third quarter of 2026.
Although Baidu has not yet released an indicative price range or an official valuation, the Wall Street Journal cites Morningstar estimates that value Kunlunxin at between 400 billion and 500 billion Hong Kong dollars — somewhere between US$51.04 billion and US$63.80 billion.
