Sou Hu Cai Jing·2026-01-16 02:48Core Viewpoint - Baidu is planning to spin off its AI chip subsidiary Kunlun Chip for an IPO in Hong Kong, aiming to unlock value and address its valuation challenges in the market [1][3]. Group 1: Reasons for Anticipation - The capital market is buzzing with excitement over Baidu's decision to spin off Kunlun Chip, especially as other tech giants have struggled with similar moves [3]. - Baidu's CEO, Li Yanhong, is taking a contrarian approach by leveraging Kunlun Chip, which contrasts with the conservative strategies of other tech companies [3]. Group 2: Valuation Concerns - Shareholders are primarily focused on valuation, as Baidu's market perception has been hindered by its reliance on search advertising, despite significant investments in AI [5][7]. - The "diversification discount" phenomenon is evident, where Baidu's valuable AI chip technology is undervalued due to its association with the company's traditional business model [7]. Group 3: Market Positioning - Kunlun Chip is positioned as a strong player in the domestic AI chip market, but its association with Baidu limits its market valuation to 8-10 times PE, compared to higher valuations for competitors [9]. - By becoming an independent entity, Kunlun Chip could transform into a neutral supplier, enhancing its attractiveness in a market facing a shortage of domestic computing power [9]. Group 4: Strategic Implications - The spin-off is seen as a "precise weight-loss surgery" for Baidu, shedding financial burdens while retaining control and potential for value appreciation [11]. - The potential future spin-off of Baidu's autonomous driving unit, Apollo, is anticipated, as it has been a significant financial drain and needs to scale independently to attract talent and investment [13][15].