Analysis of the Valuation Impact of Baidu Kunlunxin's Listing

Based on the latest data and market analysis, I will provide a detailed interpretation of the impact of Baidu Kunlunxin’s listing on the valuation of its AI chip business and Baidu’s overall market capitalization.

According to industrial and commercial change information, Kunlunxin completed its shareholding system reform in December 2025, with its registered capital increasing sharply from 21.28 million yuan to 400 million yuan, a growth rate of 1780%[1][2]. The company’s latest valuation has reached

, an increase of about 61.5% compared to the 13 billion yuan in its first round of financing in 2021[1][3].

In terms of business scale, Kunlunxin achieved revenue of approximately 1.3 billion yuan in 2025, and JPMorgan predicts that it will soar to

in 2026, a six-fold increase[1]. Based on an average price-to-sales ratio (PS) of 10 times for technology stocks, its IPO valuation is expected to exceed [1]. Currently, Baidu holds a 59.45% stake in Kunlunxin and is the controlling shareholder[1][3].

After the news of Kunlunxin’s spin-off and listing broke, Baidu’s Hong Kong share price rose significantly. On January 2, 2026, Baidu Group’s Hong Kong shares surged by

, with a total market capitalization reaching approximately [1][2]. This increase reflects the market’s immediate response to the logic of ‘unlocking hidden asset value’.

The value impact of the spin-off and listing on Baidu is mainly reflected in the following three aspects:

: After Kunlunxin is spun off and listed independently, its AI chip business will transform from a ‘hidden asset’ of Baidu to a publicly tradable asset with an independent valuation. Based on an 80 billion yuan valuation, Baidu’s stake is worth approximately [1]. This figure is equivalent to about 12.3% of Baidu’s current Hong Kong market capitalization.

: The spin-off allows investors to more clearly evaluate the independent performance and development prospects of Baidu’s core internet business and various artificial intelligence business units (including cloud services, autonomous driving, and chips)[2][3]. This increase in valuation transparency helps eliminate the valuation discount on Baidu’s diversified businesses.

: If Kunlunxin successfully lists and obtains a high valuation, Baidu may receive a valuation premium due to its positioning as a ‘holding-type technology platform’[2].

Baidu clearly stated in its announcement that the three core reasons for promoting Kunlunxin’s spin-off and listing include: enhancing valuation transparency, attracting professional investment institutions in the hard technology track, and endowing Kunlunxin with independent financing capabilities[3]. This spin-off strategy will enable Baidu to allocate financial resources more effectively and focus on developing its core businesses.

The successful listing of Kunlunxin will further strengthen Baidu’s layout in the entire AI industry chain. As the underlying computing infrastructure supporting upper-layer applications such as Wenxin Large Model, Intelligent Cloud, and autonomous driving, Kunlunxin’s independent development will in turn feed back into Baidu’s overall AI ecosystem[2][3]. For example, Baidu has already trained a multimodal model cost-effectively based on a single cluster of 5,000 P800 cards, and the training cluster has now expanded to more than 10,000 cards[1].

From the perspective of market competition, Kunlunxin’s shipment volume reached 69,000 units in 2024, approximately

that of Cambricon (26,000 units)[1], and it has already entered the first echelon of the domestic AI chip market. After independent listing, its identity as a neutral supplier will be further strengthened, which will help it win more external customers, including state-owned enterprises and government-led data center projects[1][3].

Despite the optimistic prospects, the following risk factors still need to be noted:

: Kunlunxin needs to face global giants such as NVIDIA and AMD with significant ecological advantages at the international level; in the domestic market, it needs to compete with strong listed competitors such as Huawei Ascend and Cambricon[2][3].

: Currently, the capital market’s tolerance for the profit cycle of hard technology enterprises is tightening. How to clearly explain the commercialization path and gross profit margin model will be an important issue during the IPO roadshow stage[2][3].

: There is significant uncertainty in the valuation expectation from 21 billion yuan to 80 billion yuan. The final IPO valuation will depend on multiple factors such as market environment, company performance, and investor sentiment.

Overall, the impact of Kunlunxin’s independent listing on Baidu’s overall market capitalization will be a

. In the short term, the market has already responded positively to this news through share price increases; in the long term, if Kunlunxin successfully lists and obtains a high valuation, it is expected to significantly increase the consolidated asset value of Baidu Group and may promote the shift in its valuation logic from an ‘internet company’ to a ‘holding-type AI technology platform’.

[1] 每日经济新闻 - “公司官宣：分拆芯片业务，独立IPO！昆仑芯最新估值210亿” (https://www.nbd.com.cn/articles/2026-01-02/4204908.html)

[2] 东方财富网 - “百度股价单日飙涨近10% '昆仑芯’独立IPO引爆价值重估” (https://caifuhao.eastmoney.com/news/20260102161354551188700)

[3] 经济观察报 - “百度股价单日飙涨近10% '昆仑芯’独立IPO引爆价值重估” (http://www.eeo.com.cn/2026/0102/776749.shtml)