Baidu in fund raising talks for semiconductor company


CNBC has learnt that Baidu is in talks to raise money for a stand-alone artificial intelligence (AI) semiconductor company in a move to diversify its operations beyond advertising.

According to CNBC, the chip company would be a subsidiary of the Chinese internet services company.

CNBC adds that Venture capital firms, GGV and IDG Capital, are already involved in early discussions to invest in the chip company where Baidu (BIDU) would be a majority shareholder.

Currently, the company has an in-house semiconductor unit to develop its Kunlun processor to process data for AI applications.

However, a stand-alone semiconductor company could help the company commercialize its operations in a better way, according to the report.

One possibility cited by CNBC is that Baidu could sell the chips to customers across various industries, including automobile industries.