A woman walks past the Baidu stand at the China International Technology Fair in Shanghai.
STR | AFP | Getty Images
GUANGZHOU, China – Baidu has raised money for its artificial intelligence (AI) semiconductor business at a $ 2 billion valuation, a person familiar with the matter told CNBC.
It comes when the Chinese search giant wants to diversify its revenue streams.
The funding round was led by CPE, a Chinese asset management and private equity firm, the person said. The venture capital firms IDG and Legend Capital also took part. A fund from Chinese investment company Oriza Holdings also participated in the round.
“Baidu’s Kunlun chip business has recently completed a round of financing. We will release more information in due course,” a Baidu spokesman said, without providing any details.
Kunlun is the name of Baidu’s AI chip business. It was not immediately known how much money Baidu raised, but the source said the chip business’s valuation after financing was $ 2 billion.
Reuters first reported on the news about the funding.
CNBC reported last month that Baidu was looking to raise money for an independent AI chip company.
Now that Kunlun’s business has raised money, it could pave the way for the unit to separate, but no final decision has been made, the source said.
AI chips are designed to process large amounts of data that can be used in artificial intelligence applications. A cash injection for Baidu’s business can help the company market the technology.
It is part of a broader push for Baidu’s diversification that allowed the company to set up an independent electric vehicle company with Geely and raise money for a biotech business. Baidu, better known as the Chinese search giant, still relies heavily on advertising revenue.
Semiconductors and artificial intelligence are two key technologies to which China hopes to increase its experience and strength.