Share Prices & Company Research

Market News

10 Feb 2021 | 10:54

Baidu in negotiations to raise funds to start AI chip company

(Sharecast News) - Chinese tech giant Baidu is in talks to raise money to start its own standalone artificial intelligence semiconductor chip company. According to a report from CNBC, someone with knowledge of the matter said Baidu's chip company would be a subsidiary, with the search giant likely to be the majority shareholder.

Venture capital firms GGV and IDG Capital are involved in early stage discussions to invest in Baidu's chip firm, the source added.

Baidu has not made an official statement on the matter and neither have the potential investors.

The move is part of Baidu's plan to diversify its business beyond advertising.

Currently, the Chinese tech giant has an in-house chip unit that helped develop its Kunlun semiconductors.

The new firm would help to commercialise its products especially among automakers that are currently facing a global chip shortage.

As a result of the rumours, Baidu stock rose over 3.5% in after hours trading.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.