From CNBC, February 10:
Chinese search giant Baidu is in talks to raise money for a stand-alone artificial intelligence semiconductor company, a person with knowledge of the matter told CNBC.
The move is emblematic of an ongoing push among China’s biggest technology firms to boost their prowess in the chip sector. And for Baidu, it marks a further effort to diversify its business well beyond advertising.
Baidu’s Nasdaq-traded shares jumped 7.4% as U.S. markets opened Wednesday. They climbed 6.67% on Tuesday.
Baidu’s chip company would be a subsidiary, with the search giant likely to be the majority shareholder, the person said. Venture capital firms GGV and IDG Capital are involved in early stage discussions to invest in Baidu’s chip firm, the source added. Both firms have extensive investments in China.
Baidu declined to comment when contacted by CNBC. IDG Capital was not immediately available for comment. Calls to GGV’s offices in Singapore, Shanghai and Beijing went unanswered.....
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