(Yicai) Sept. 21 -- Chinese internet firm Kunlun Tech will purchase a 58 percent stake in artificial intelligence big computing power chip startup Aijie Kexin Technology for CNY680 million (USD93.2 million) to ensure a stable supply of computing power.

Kunlun Tech’s subsidiaries Horgos Kunuo Tianqin Venture Capital and Xinyu Kunzhi Technology will invest CNY120 million and CNY560 million for 10.2 percent and 47.8 percent of Aijie Kexin, respectively, the Beijing-based parent company announced yesterday.

Aijie Kexin mainly researches, develops, and produces AI big computing power and supporting chips, especially for artificial intelligence generated content and AI games’ smart computation. Its core team comprises famous experts in the fields of integrated circuits, AI, and large language models.

After the deal, Kunlun Tech and Aijie Kexin’s founder Jiang Yimin will join hands with the Institute of Microelectronic of the Chinese Academy of Sciences, a top-notch Chinese scientific research body in the chip field, to achieve breakthroughs in AI big computing power and developments in building more advanced AI chips, Kunlun Techs noted.

Kunlun Techs, which started from mobile games and is now a comprehensive internet platform, has expanded its presence to all segments of the industry chain, including AI chips, AIGC, LLMs, AI-based applications, and information distribution.

Kunlun Tech achieved a net profit of CNY358 million in the first half of the year, down 44 percent from a year earlier, while revenue rose 7.8 percent at CNY2.4 billion (USD328.9 million).

Kunlun Tech shares [SHE: 300418] were trading up 1 percent at CNY30.56 (USD4.19) as of 11.05 a.m. in Shenzhen today.

Editor: Futura Costaglione