Baidu reportedly goals to deal with chip scarcity plaguing gaming, crypto and automobiles
A global chip shortage affects various industries, from games to automotive to cryptocurrency mining.
Amid the ongoing bull run by Bitcoin (BTC), the crypto mining industry became massively profitable. Many miners aggressively started stacking mining hardware – sometimes using unconventional methods – causing shortages in other sectors.
The COVID-19 surge in game consoles, computers and televisions has even had an impact on automobile manufacturers, who are major buyers of silicon semiconductors. Chip shortages have even caused General Motors to shut down three plants and slow down production at others.
Amid this shortage, Chinese internet giant Baidu is reportedly raising money for a stand-alone artificial intelligence chip company.
Large venture capital firms like IDG Capital and Golden Gate Ventures (GGV) are among the potential investors in Baidu’s upcoming semiconductor company, according to a February 10 report by CNBC. Both IDG and GGV are known for notable contributions to the blockchain industry. IDG supports companies like KuCoin and GGV supports million dollar funds for crypto startups.
According to CNBC, the potential chipmaker would be a subsidiary with Baidu as the majority shareholder. The new semiconductor business would aim to sell chips to customers across a variety of industries, including automakers.
Baidu already operates a proprietary chit unit and is developing its Kunlun semiconductors. That unit isn’t enough to commercialize its technology, however, CNBC said, citing anonymous people familiar with the matter.
Baidu did not immediately respond to Cointelegraph’s request for comment.
The latest news comes amid Nasdaq-traded shares of Baidu, which hit new all-time highs above $ 295 on February 9. A number of global semiconductor companies like Nvidia have seen their stocks soar recently.