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Baidu Spins Off Kunlunxin — And China’s AI War Against Nvidia Escalates!

Baidu is making headlines with its AI chip subsidiary, Kunlunxin, filing for an IPO on the Hong Kong Stock Exchange, underscoring China’s intensified efforts to reduce dependence on U.S. chipmakers amid widening tech export restrictions. The filing, confirmed on January 1, 2026, comes at a time when Nvidia, the global AI chip leader, remains hamstrung in China due to U.S. regulatory curbs. Analysts from Jefferies estimate Kunlunxin’s valuation could land between $16 billion and $23 billion, suggesting high investor appetite for domestic AI semiconductor plays. The news triggered a sharp 9.7% spike in Baidu’s U.S.-listed ADRs and a 9.4% rally in its Hong Kong stock. Baidu, often called “China’s Google,” is seeking to capitalize on momentum behind indigenous AI development, much like Alphabet (NASDAQ:GOOGL) has done in the West.