Baidu Inc. (BIDU) experienced a significant pre-market surge of 5.19% on Monday, driven by market enthusiasm over plans for its artificial intelligence chip subsidiary to go public.

Multiple media reports indicate that Baidu's AI chip unit, Kunlunxin, is planning an initial public offering in Hong Kong with a target valuation of approximately $50 billion. According to these reports, the chipmaker is prioritizing investors who commit to purchasing its semiconductor products as part of the share offering, with some institutions being asked to buy chips worth three to seven times their subscription amount.

The planned spin-off represents a major value-unlocking event for Baidu, which retains a 58% ownership stake in Kunlunxin. The subsidiary, originally Baidu's in-house silicon unit founded in 2011, has emerged as one of China's promising domestic AI chip developers, with its P800 model having completed large-scale validation and multiple ten-thousand-card clusters delivered since 2025.