Chinese search giant Baidu is reported to be preparing to list its growing chip business Kunlunxin in Hong Kong, with Mktnews.com stating an application could be filed as soon as Q1 2026.

The financial news platform added the IPO could be completed by early 2027.

A recent CNY2 billion ($283 million) fundraising round which included an investment from a China Mobile fund valued Kunlunxin at CNY21 billion, Mktnews.com stated.

Baidu did not comment on the report.

The subsidiary makes AI chips for data centre servers and forecasts revenue of CNY8 billion in 2026, up from a target of CNY3.5 billion this year.

In October, investment bank Macquarie valued Kunlunxin at an eye-watering $28 billion.

The potential listing comes as chipmakers in China gear up to develop domestic alternatives to imported AI chips as the government pressures companies to avoid Nvidia GPUs.

With the US expanding restrictions on advanced AI chip exports to China, the country is working to reduce its reliance on imports.

Last week, China-based AI computing GPU maker Moore Threads Technology raised more than $1.1 billion in an IPO on the Shanghai stock market. Its shares rocketed this week.