Woofun AI reports that Baidu’s AI chip subsidiary Kunlun Chip is pursuing an initial public offering in Hong Kong with a target valuation of $50 billion. The company has established chip procurement commitments as a prerequisite for subscription, prioritizing buyers who agree to purchase chips valued at three to seven times their subscription amount.

Woofun AI data shows that this valuation implies a nearly 40% premium over Baidu’s current market capitalization, despite Baidu holding a 58% stake. While Kunlun Chip’s products are compatible with NVIDIA’s CUDA system and serve clients like Tencent, the firm was excluded from China’s May list of certified secure chips due to reliance on Samsung foundries. Negotiations with SMIC International are underway to shift production domestically.