Baidu, the Chinese Internet giant, is planning to commercialize its chip technology by setting up a dedicated subsidiary backed by crypto-friendly venture capital firms.
It has been reported that the crypto mining industry became massively profitable amidst Bitcoin’s (BTC) ongoing bull run, as many miners started aggressively stacking mining hardware by sometimes unconventional methods, which led to shortages in other sectors.
The report said that amidst this shortage, Baidu is reportedly raising money for a standalone artificial intelligence (AI) chip company.
A global chip shortage is affecting multiple industries from gaming, automotive, and crypto mining. How can this problem be solved? https://t.co/3JPbxO6NK2 — Cointelegraph (@Cointelegraph) February 10, 2021
Major venture capital firms like IDG Capital and Golden Gate Ventures (GGV) are among potential investors in Baidu’s upcoming semiconductor firm. Both IDG and GGV are known for notable contributions to the blockchain industry, with IDG backing companies like KuCoin, and GGV supporting million dollar funds for crypto startups.
According to CNBC, the potential chip company would be a subsidiary with Baidu as the majority shareholder. The new semiconductor business would aim to sell chips to customers across several industries, including automakers. Baidu is already running a proprietary chit unit, developing its Kunlun semiconductors.
Likewise, CNBC said that this unit is not enough to commercialize its technology by citing anonymous people familiar with the matter.
Thus, the latest news comes amid Baidu’s Nasdaq-traded shares hitting new all-time highs above $295 on February 9, as a number of global semiconductor companies like Nvidia have seen their stocks climb recently.