Kunlun Tech Acquires $93 Million Controlling Stakes in Aijie Kexin for AI Chip Development

On September 20th, Kunlun Tech announced that it plans to increase capital and acquire a controlling stake in Beijing Aijie Kexin Technology Co., Ltd., an AI high-performance chip startup. This will be done through its two wholly-owned subsidiaries. These companies will invest ¥120 million and ¥560 million respectively from their own funds, obtaining 10.2353% and 47.7647% equity of Aijie Kexin, with a total investment of ¥680 million ($93 Million) and acquiring a 58% stake in Aijie Kexin.

Kunlun Tech announced that after acquiring the AI high-performance chip startup Aijie Kexin, it will collaborate with its founder Jiang Yimin and the top domestic research institution in the field of chips, China Academy of Sciences Microelectronics Research Institute, to strive for breakthroughs in AI high-performance computing and supporting chip development, aiming to create more advanced artificial intelligence chips. Kunlun Tech will also complete the full industry chain layout covering artificial intelligence chips, large models, and AI applications.

Aijie Kexin is mainly engaged in the research, development, and production of AI high-performance computing and supporting chips, with a special focus on generative AI (AIGC), especially intelligent computation for AI games. The core team consists of renowned experts and scholars in the fields of integrated circuits, artificial intelligence, large language models, etc.

Kunlun Tech reminds that the industry to which Aijie Semiconductor belongs is still in its early stages, and future promotion will be influenced by various factors such as technology, products, policies, financing, etc. There may be situations where the operating conditions of invested companies do not meet expectations. Investors need to make rational investments and pay attention to investment risks.

According to public information, Kunlun Tech is an internet platform company that focuses on overseas expansion. Its business covers various fields such as AGI and AIGC, information distribution, social entertainment, and gaming. It has commercialization methods including search, advertising, virtual item payments, and membership fees. Thanks to the concept of AI, Kunlun Tech’s stock price soared in the first half of this year and reached a high point of ¥70.66 ($9.7) at one point.

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Kunlun Tech previously stated that in 2023, the company has formulated a long-term strategy of “All in” AGI and AIGC. Building on a solid foundation of existing businesses, it aims to empower various business sectors comprehensively through AGI and AIGC. The business architecture will be upgraded once again, forming three core business matrices: AGI and AIGC, overseas information distribution and metaverse, as well as investments.

According to Kunlun Tech’s disclosure, after investing in and holding shares of Aijie Semiconductor, they have completed the full industrial layout of AGI (Artificial General Intelligence) and AIGC (AI Graphics Chip). Since 2020, Kunlun Tech has been strategically developing AGI and has independently developed Tian Gong Universal Large Model. They have formed six major AI business matrices including AI large models, AI search, AI music, AI games, AI social media, and AI comics. Some of these businesses have started commercialization.