3 6 Ke·2026-01-13 12:26Core Viewpoint - Baidu's subsidiary Kunlun Chip has submitted an A1 listing application to the Hong Kong Stock Exchange, signaling a potential shift in strategy towards valuing its core assets through spin-offs [1][2]. Group 1: Spin-off Significance - The spin-off of Kunlun Chip is not just a subsidiary listing but a signal of Baidu's intent to unlock value amid a challenging environment for Chinese internet giants regarding asset separation [2]. - The market has historically undervalued Baidu, perceiving it primarily as a traditional search advertising company, despite its significant investments in AI and technology [3][4]. - Kunlun Chip, as a leading AI chip manufacturer, has been undervalued within Baidu, which limits its growth potential and financing capabilities [5][6]. Group 2: Market Dynamics and Identity - The chip industry operates on a principle of neutrality, which has hindered Kunlun Chip's growth while it remained a part of Baidu [7]. - By becoming an independent entity, Kunlun Chip can attract a broader customer base and tap into a larger total addressable market (TAM) [7]. - The financial burden of funding chip development through Baidu's advertising revenue is no longer sustainable, making the spin-off a strategic move to optimize cash flow [8]. Group 3: Future Speculations on Autonomous Driving - The potential for Baidu to spin off its autonomous driving business, particularly the Apollo project, is being speculated as the next logical step following Kunlun Chip's separation [9][10]. - The autonomous driving sector is at a critical juncture, with the need for significant investment to scale operations, which could negatively impact Baidu's financial performance if retained within the company [10][11]. - A proposed spin-off could involve creating a new company focused solely on autonomous driving, allowing for better valuation and attracting strategic investors [11][12]. Group 4: Strategic Implications - The spin-off of Kunlun Chip may serve as a precursor to further separations within Baidu, allowing each business unit to thrive independently [14][15]. - The historical context of successful spin-offs in the tech industry suggests that separating high-growth potential businesses can lead to enhanced valuations and operational efficiencies [13][14]. - Baidu's actions indicate a shift from maintaining a large conglomerate to enabling individual units with unique growth trajectories to compete effectively in their respective markets [15].