Baidu in talks to raise money for a standalone A.I. chip company

A lady walks past the Baidu booth on the China International Technology Comely in Shanghai.

STR | AFP | Getty Pictures

GUANGZHOU, China — Chinese language search enormous Baidu is in talks to rob money for a standalone artificial intelligence semiconductor company, a particular person with recordsdata of the topic instructed CNBC.

The ride is emblematic of an ongoing push amongst China’s finest skills corporations to enhance their prowess in the chip sector. And for Baidu, it marks a additional effort to diversify its substitute neatly past marketing.

Baidu’s Nasdaq-traded shares jumped bigger than 3.5% after hours. They climbed 6.67% on Tuesday.

Baidu’s chip company would be a subsidiary, with the hunt enormous at probability of be the majority shareholder, the particular person acknowledged. Mission capital corporations GGV and IDG Capital are alive to in early stage discussions to make investments in Baidu’s chip agency, the offer added. Every corporations absorb intensive investments in China.

Baidu declined to comment when contacted by CNBC. IDG Capital became not correct away readily accessible for comment. Calls to GGV’s locations of work in Singapore, Shanghai and Beijing went unanswered.

For the time being, Baidu has an in-dwelling chip unit that has helped to beget its Kunlun semiconductors, designed to activity tall portions of recordsdata for artificial intelligence capabilities. However a standalone chip company is seen helping Baidu to better commercialize its skills, the offer acknowledged.

The semiconductor substitute would goal to sell chips to customers in loads of industries including automakers, which might possibly well be for the time being going by diagram of a global chip scarcity.

A standalone chip maker will also additionally tie into other aspects of Baidu’s agencies, reminiscent of its driverless vehicle instrument.

Diversification flurry

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