Search giant Baidu has set up a new entity, Kunlunxin, to take over its artificial intelligent chip business, led by OUYANG Jian, former chief engineer of Baidu’s chip unit.

The new company completed a round of fundraising in March, which came up with a value of 13 billion yuan (US$2 billion).

Ouyang sees unprecedented opportunities with data and computing at the core of almost all businesses, but most obviously in smartphones and EVs. Baidu has developed its own chips for a decade and the time is the right time to set up a new company to go its own way, he said.

The first Kunlun chip was revealed in 2018 and went into full production in 2020. A new Kunlun chip said to triple previous performance, will be in mass production this year.