Baidu's Kunlun Core Begins IPO Coaching

Baidu's AI chip subsidiary, Kunlun Core (Beijing) Technology Co., Ltd., officially launched the scientific innovation board listing counseling on May 7th, with CICC serving as the counseling institution. At the same time, Kunlun Core has already submitted a confidential application for listing on the main board of Hong Kong Stock Exchange in January this year, formally advancing the A+H dual market listing layout.

Kunlun Core, founded in 2011 and formerly known as Baidu's Intelligent Chip and Architecture Department, completed independent financing in 2021. Baidu currently holds 57.67% of its shares. The company focuses on the research and development of AI inference and training chips, and has completed the large-scale deployment of three generations of products. Its customers span multiple industries including the internet, finance, energy, and automobile. The latest round of financing occurred last July, introducing industrial capital and national-level funds.

On the valuation front, CICC pointed out that the expected valuation range for domestic GPU companies listed on the Hong Kong stock market is between 30 billion and 100 billion Hong Kong dollars, and Kunlun Core should be at the top of this range. Considering factors such as group discounting, the valuation contribution of Kunlun Core to Baidu is expected to be around 50 billion Hong Kong dollars, equivalent to about 25% of Baidu's current market value.

The advancement of Kunlun Core's listing is a microcosm of domestic AI chip companies seeking capital support in the context of Sino-American technological competition. If the A+H dual market listing goes well, it will provide more ample financial reserves for its chip development and capacity expansion, and will also become another important target in the AI chip sector of the scientific innovation board after Cambricon.