A lady walks previous the Baidu sales space on the China Worldwide Know-how Truthful in Shanghai.

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GUANGZHOU, China — Chinese language search large Baidu is in talks to lift cash for a standalone synthetic intelligence semiconductor firm, an individual with information of the matter advised CNBC.

The transfer is emblematic of an ongoing push amongst China’s greatest expertise companies to spice up their prowess within the chip sector. And for Baidu, it marks an additional effort to diversify its enterprise effectively past promoting.

Baidu’s chip firm could be a subsidiary, with the search large more likely to be the bulk shareholder, the particular person stated. Enterprise capital companies GGV and IDG Capital are concerned discussions to put money into Baidu’s chip agency, the supply added. Each companies have intensive investments in China.

Baidu declined to remark when contacted by CNBC. IDG Capital was not instantly obtainable for remark. Calls to GGV’s workplaces in Singapore, Shanghai and Beijing went unanswered.

At the moment, Baidu has an in-house chip unit that has helped to develop its Kunlun semiconductors, designed to course of big quantities of information for synthetic intelligence purposes. However a standalone chip firm is seen serving to Baidu to raised commercialize its expertise, the supply stated.

The semiconductor enterprise would intention to promote chips to prospects in a number of industries together with automakers, that are at present dealing with a global chip shortage.

A standalone chip maker may additionally tie into different elements of Baidu’s companies, equivalent to its driverless automotive software program.

Diversification flurry