Baidu Accelerates AI Chip Development Amid China’s Computing Power Crunch

Baidu's transformation from a search engine to an AI and semiconductor player marks a strategic pivot as China's tech giants scramble for domestic computing solutions. The company's Kunlunxin chip unit has emerged as a critical contender in replacing restricted Nvidia GPUs, with Deutsche Bank recognizing its leadership in high-performance AI processors.

The five-year roadmap for Kunlun chips reveals aggressive development targets, with the M100 and M300 series slated for 2026-2027. Baidu's hybrid approach—running its ERNIE models on both proprietary chips and remaining NVIDIA hardware—demonstrates pragmatic adaptation to export controls.

Commercial momentum builds as China Mobile-linked suppliers place orders, validating Baidu's full-stack strategy encompassing chips, data centers, and cloud-based AI services. Analyst upgrades reflect growing confidence in Kunlunxin's ability to capture demand from corporations forced to abandon foreign hardware.