Kunlunxin, the company that makes computer chips for Baidu, is getting ready to sell shares on the Hong Kong stock exchange. Three people who know about the plans say that the business just finished raising money from investors and is now worth 21 billion yuan, which equals $2.97 billion.
The planned stock sale happens as China works to build its own chip industry. The United States has put limits on selling advanced computer chips to China, so Beijing wants Chinese companies to make their own versions. Several other Chinese chip makers are also looking to go public soon.
Investor interest in AI chip companies is running high right now. On Friday, Moore Threads started trading on the Shanghai Stock Exchange and its shares shot up to more than five times what investors paid in the initial offering. Moore Threads makes graphics processing units that power artificial intelligence systems.
According to documents that Reuters looked at, Kunlunxin wants to finish its stock sale by early 2027. Two people familiar with the situation said the company is telling people it plans to file the paperwork with the Hong Kong Stock Exchange as soon as the first three months of 2026.
Recent funding round boosts valuation
Kunlunxin wrapped up its most recent round of funding within the last six months. The company brought in more than 2 billion yuan from a China Mobile investment fund and other private backers, according to three different sources. This funding round put the company’s value at about 21 billion yuan, which is higher than the 18 billion yuan from the previous time it raised money.
The people who shared this information asked not to be named because the company has not made it public yet.
Why are Chinese chip companies desperate to go public? Making chips at home has become important for China because the U.S. government has blocked the sale of Nvidia’s newest chips to Chinese buyers. Kunlunxin is joining other Chinese chip companies that want to sell shares to the public. After Moore Threads started trading, another company called MetaX should begin trading in the next few weeks. Biren Technology, which the U.S. has put on a blacklist, is also planning to list in Hong Kong.
Baidu set up Kunlunxin in 2012 as an internal team to develop AI chips. The unit now operates on its own, though Baidu still owns the controlling share. At first, Kunlunxin only made chips for Baidu’s needs. But over the last two years, it has started selling to other customers as Chinese tech giants reduce reliance on foreign chips.
The investment documents show that Kunlunxin expects to bring in more than 3.5 billion yuan in revenue this year and not lose money. Last year, in 2024, the company lost about 200 million yuan while making around 2 billion yuan in revenue. This year, more than half of what it makes should come from selling to outside customers, two sources said.
Latest product line gains market traction
The company’s best chip, called the P800, has been selling well this year. Most buyers are state-owned companies and government offices that are building data centers. Last month, Kunlunxin showed off two new chip products. The M100 focuses on running AI programs and will come out in early 2026. The M300 can both train and run AI systems and is set for early 2027.
When news of the listing plans came out on Friday, Baidu’s stock price in Hong Kong jumped up as much as 7.8%. The surge in Hong Kong listings reflects a broader trend of Chinese companies choosing the Asian financial hub over U.S. markets for their public debuts.
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