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

A world chip scarcity is affecting numerous 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 automobile producers, who’re main shoppers of silicon semiconductors. Chip shortages have even led Normal 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.

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

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

Baidu is already operating a proprietary chit unit, creating its Kunlun semiconductors. Nevertheless, this unit is just not sufficient to commercialize its expertise, CNBC mentioned, citing nameless individuals aware of 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. A variety of world semiconductor corporations like Nvidia have seen their shares climb not too long ago.