Barclays: Kunlun Core's IPO may bring incremental value to Baidu.

Barclays analysts stated in a research report that the upcoming IPO of Kunlun Core may bring incremental value to its parent company Baidu. They pointed out that Baidu's core advertising business has been under immense pressure and added, "With multiple AI chatbots now available on consumers' mobile phones, the usage of traditional search may accelerate decline." However, they believe that recent investors' enthusiasm for the company's AI chip business has offset the challenges faced by its advertising business. They estimate that Kunlun Core may generate revenues of $1.5 to $2 billion in 2027. Considering Kunlun Core's valuation of $25 to $30 billion, and the fact that Baidu holds 60% of its shares, Baidu could potentially gain $15 to $18 billion in incremental value.