Ernie Assistant User Base Tops 200 Million

Users can generate images and videos, write summaries, and select different AI models, including DeepSeek or Baidu's own Ernie model, the Wall Street Journal reported on Tuesday, citing sources familiar with the matter.

Kunlunxin IPO Aims to Unlock Chip Value

Baidu is moving to unlock value by preparing a Hong Kong IPO for its AI chip unit, Kunlunxin, which has hired major banks to work on a listing that could raise up to $2 billion, with the final size still under discussion.

The company said the spinoff will spotlight Kunlunxin's AI chip business, expand funding options, and improve accountability, while allowing the company to retain majority ownership.

Analysts view the move as both strategic and necessary as China seeks domestic alternatives to Nvidia Corp (NASDAQ:NVDA) amid export restrictions.

They expect Kunlunxin's chips to play a larger role in data centers and telecom networks, with JPMorgan projecting Baidu's chip revenue to grow sixfold by 2026 and valuing Kunlunxin as a significant standalone AI hardware business.

BIDU Price Action: Baidu shares were up 3.38% at $154.74 at last check Tuesday, according to Benzinga Pro data.

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