Baidu's processor division to reach $2.5 billion in capitalization

Baidu's structurally independent AI processor division Kunlun is trying to raise venture capital, and before the separation the business was capitalized at $1.5 billion.
The new round of funding will allow Kunlun to raise the bar to $2.5 billion and attract new customers.
Source image: PR NewswireA Bloomberg reported that Kunlun intends to raise about $317 million to be spent not only on developing new AI processors but also to expand its customer base, because its only customer now is its parent company Baidu, which uses Kunlun processors in its server systems for its search services.
It is noteworthy that already existing processors Kunlun, introduced in August last year, are produced by 7-nm technology, advanced enough for the Chinese developer.Similar success until last year could boast and Huawei Technologies, but U.S.
sanctions denied it access to the assembly line TSMC, and therefore a powerful stream of processors HiSilicon its development quickly depleted.
The software giant Baidu's ambitions to create its own processors are understandable, as they replicate the experience of world leaders.
Ready-made solutions by NVIDIA, Intel and AMD do not suit everyone, so Amazon and Google consider it appropriate to invest in the development of their own server processors.