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Baidu reportedly goals to deal with chip scarcity plaguing gaming, crypto and vehicles

02/10/2021

Baidu is reportedly planning to commercialize its chip expertise by organising a devoted subsidiary backed by crypto-friendly enterprise capital companies.

A world chip scarcity is affecting varied sectors of business from gaming to automotive and cryptocurrency mining.

Amid Bitcoin’s (BTC) ongoing bull run, the crypto mining business grew to become massively worthwhile. Many miners began aggressively stacking mining {hardware} —by generally unconventional strategies— which led to shortages in different sectors.

The COVID-19 fueled surge in gaming consoles, computer systems and TVs has even had knock-on results for automotive producers, who’re main shoppers of silicon semiconductors. Chip shortages have even led Basic Motors to close down three vegetation and sluggish manufacturing at others. 

Amid this scarcity, Chinese language web large Baidu is reportedly elevating cash for a standalone synthetic intelligence chip firm.

Based on a Feb. 10 report by CNBC, main enterprise capital companies like IDG Capital and Golden Gate Ventures, or GGV, are amongst potential buyers in Baidu’s upcoming semiconductor agency. Each IDG and GGV are recognized for notable contributions to the blockchain business, with IDG backing firms like KuCoin, and GGV supporting million greenback funds for crypto startups.

Based on CNBC, the potential chip firm can be a subsidiary with Baidu as the bulk shareholder. The brand new semiconductor enterprise would intention to promote chips to prospects throughout a number of industries, together with automakers.

Baidu is already operating a proprietary chit unit, growing its Kunlun semiconductors. Nonetheless, this unit just isn’t sufficient to commercialize its expertise, CNBC mentioned, citing nameless folks acquainted with the matter. 

Baidu didn’t instantly reply to Cointelegraph’s request for remark.

The most recent information comes amid Baidu’s Nasdaq-traded shares hitting new all-time highs above $295 on Feb. 9. Various world semiconductor firms like Nvidia have seen their shares climb not too long ago.