Jing Ji Guan Cha Wang·2026-01-02 08:19Core Viewpoint - Baidu's announcement regarding the IPO application of its AI chip subsidiary Kunlun Chip has triggered a significant market reaction, indicating a positive reassessment of the value of Baidu's AI hardware assets [2][9] Group 1: Company Developments - Kunlun Chip, previously part of Baidu's internal smart chip and architecture department, has submitted its application for a mainboard listing on the Hong Kong Stock Exchange, marking the start of its independent capitalization process [2][6] - The valuation of Kunlun Chip has increased from approximately 13 billion yuan (about 1.9 billion USD) in 2021 to 21 billion yuan (approximately 2.97 billion USD) by July 2025, reflecting market recognition of its technological path and commercial potential [2][6] - Baidu holds a 59.45% stake in Kunlun Chip, with other shareholders including industry capital such as General Technology High-end Equipment Fund and BYD [4] Group 2: Strategic Rationale for Spin-off - Baidu outlined three core rationales for the spin-off: enhancing the independent valuation transparency of Kunlun Chip, attracting specialized investors in the hard technology sector, and strengthening management accountability while enabling independent financing [5] - The Hong Kong Stock Exchange has granted Baidu an exemption from certain regulations, allowing for a more efficient spin-off process without the need to offer existing shareholders guaranteed allocations of Kunlun Chip shares [5] Group 3: Market Position and Challenges - Kunlun Chip focuses on AI computing chips and integrated hardware-software systems, serving as the foundational computing power for Baidu's major services, including its Wenxin large model and autonomous driving [6][7] - Post-IPO, Kunlun Chip will face scrutiny from the public market and competition from established players like NVIDIA and AMD internationally, as well as domestic competitors such as Huawei's Ascend and Cambricon [6][8] - The company must demonstrate its technological and product advancements, customer expansion beyond Baidu's ecosystem, and a sustainable profitability path to succeed in the public market [6][7] Group 4: Impact on Baidu and the AI Chip Sector - The spin-off has led to a nearly 10% surge in Baidu's stock price, reflecting market optimism about unlocking hidden asset value [8] - If Kunlun Chip achieves a successful IPO and high valuation, it could enhance Baidu's consolidated asset value and provide a valuation premium due to its positioning as a "holding technology platform" [8] - Kunlun Chip's IPO process will serve as a significant benchmark for the confidence and valuation system of the domestic AI chip industry, alongside other listed companies like Cambricon and Horizon Robotics [8][9]