Kunlun, a semiconductor-focused subsidiary of China-based internet group Baidu, has secured an undisclosed amount from investors including Legend Capital, the venture capital firm formed by conglomerate Legend Holdings, Reuters reported yesterday.
The round was led by private equity firm Citic Private Equity Funds Management and included IDG Capital and Oriza Holdings vehicle Oriza Hua, according to a person familiar with the matter cited by Reuters. Baidu confirmed the funding but declined to release further details.
Kunlun was launched in 2018 has been designing and producing cloud-based, artificial intelligence (AI)-equipped chips for its parent company’s driverless electric vehicles and cloud computing networks.
Reuters’ source said the deal valued Kunlun at roughly $2bn, adding that Baidu, which owns another semiconductor arm dubbed Honghu, is considering spinning off the subsidiary.
Baidu’s semiconductor ventures represent a diversification for the company, which otherwide mainly relies on advertising to generate revenue.
