Analysis of Kunlun Chip's Market Share and Commercialization Progress in China's AI Chip Market

According to the latest market data, Kunlun Chip’s performance in China’s AI chip computing power market is as follows:

According to IDC data, Kunlun Chip’s AI chip shipment volume ranked second in the industry in 2024, firmly staying in the first tier of domestic AI chips [1].

• ByteDance Inference Pool:
  Kunlun Chip P800 accounted for 18% of ByteDance Volcano Engine’s Q3 2025 inference pool, second only to NVIDIA H20 [2].
• Tencent Centralized Procurement:
  In Tencent CSIG (Cloud and Smart Industry Group)'s October centralized procurement, Kunlun Chip directly obtained 70% share of bid package three [2].
• China Mobile Large Order:
  In China Mobile’s 2025-2026 AI server procurement project worth billions of yuan, Kunlun Chip obtained 70%, 70%, and 100% shares in bid packages 1, 2, and 3 respectively [2].

Kunlun Chip has launched a domestic computing power cluster with 32,000 cards, achieving large-scale deployment [1].

• 2024 revenue was approximately 2 billion yuan
• Full-year revenue in 2025 is expected to be around 5 billion yuan, a significant increase from 2024 [3]

Kunlun Chip has completed large-scale deployment in key industries such as the Internet, finance, energy and power, and telecom operators, with customers including leading enterprises like Baidu, ByteDance, Tencent, China Mobile, and China Merchants Bank [1][2].

Kunlun Chip adopts an integrated delivery business model of ‘chip + server + software’, with a comparable gross profit margin of 55%-60%, far higher than the 40% average of pure chip design companies. This business model brings higher revenue visibility and more stable gross profit margins [2].

Overall, Kunlun Chip has become an important participant in China’s domestic AI chip market, occupying a significant market share in specific application scenarios (such as inference scenarios) and among leading customers.

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[1] Sina Finance - “Kunlun Chip Launches Hong Kong IPO: How Does a Chip Reflect Baidu’s Full-Stack AI Capabilities?” (https://finance.sina.com.cn/tech/roll/2026-01-04/doc-inhfcasw7644132.shtml)
[2] OFweek AI Network - “Baidu Surges 12% at the Start of 2026: Kunlun Chip Submits Listing Application, A Valuation Reassessment of the ‘AI Silicon Heart’” (https://m.ofweek.com/ai/2026-01/ART-201700-12001-30678081.html)
[3] Sina Finance - “Baidu’s Kunlun Chip to Complete Share Reform Soon: Accelerating IPO Sprint, 2025 Revenue Far Exceeds 2 Billion Yuan” (https://finance.sina.com.cn/roll/2025-12-16/doc-inhaywrm8068656.shtml)