According to sources with inside knowledge of the situation, Kunlunxin, Baidu’s AI chip subsidiary, has appointed CICC, CITIC Securities, and Huatai Securities as the lead underwriters for its upcoming initial public offering (IPO). CSC Securities is also involved in crafting the issuance strategy. The company is planning to go ahead with a Hong Kong IPO, aiming to raise up to US$2 billion. However, there is a possibility that the final funding amount may be adjusted to around US$1 billion, as discussions are still in progress. Earlier, Kunlunxin filed a confidential application for a listing on the main board with the Hong Kong Stock Exchange on January 1, 2026. Baidu acknowledged the development in an announcement on January 2, noting that the spin-off and subsequent listing of Kunlunxin would be commercially advantageous for both entities and in line with the overall interests of shareholders. Originally established in 2011 as Baidu’s Intelligent Chip and Architecture Department, Kunlunxin underwent independent financing in 2021, achieving a valuation of RMB 1.3 billion. By 2025, it had successfully completed seven rounds of financing, with its latest valuation soaring to approximately RMB 21 billion. Baidu remains the controlling shareholder, holding a 59.45% stake. Kunlunxin’s core offerings encompass two generations of mass-produced 7nm process AI chips, as well as the P800 chip released in 2025. The third-generation AI chips, M100 and M300, are slated for launch in 2026 and 2027, respectively. The company’s clientele includes Baidu, China Mobile, China Merchants Bank, and other prominent entities. In 2024, its revenue exceeded RMB 1 billion, and in 2025, it surpassed RMB 2 billion. Additionally, Kunlunxin secured a billion-yuan-level order in China Mobile’s 2025-2026 centralized procurement project for artificial intelligence general-purpose computing equipment.