Baidu’s artificial-intelligence chip unit has hired banks for an initial public offering in Hong Kong that may raise as much as $2 billion, according to people familiar with the matter, Bloomberg reported.

Baidu shares pared losses in Kong Kong, and gianed 2.2% in US overnight trading.

Kunlunxin has picked China International Capital Corp., Citic Securities Co. and Huatai Securities Co. as lead banks on the IPO, the people said, asking not to be identified because the information is private. China Securities International is also working on the potential offering, they said.

Deliberations are ongoing and details such as the IPO size may change, the people said, noting that the number could also be about $1 billion.

Kunlunxin, which makes chips that power servers in data centers, confidentially filed for the IPO last week, Baidu said on Jan. 2.

AI-related companies are going public in Hong Kong to tap investor demand for a sector deemed strategic by Beijing as it pushes for technological self-reliance. AI chip designer Biren Technology’s shares jumped 76% on their Hong Kong debut last week, while others that listed on mainland Chinese exchanges at the end of last year posted triple-digit first-day gains.

Kunlunxin was created in part to sate Baidu’s appetite for computing power to run its online businesses, and it is one of a few Chinese companies capable of designing the powerful accelerators essential for AI operations. Along with firms like Huawei Technologies. and Cambricon Technologies, Kunlunxin is likely to be central to Beijing’s effort to wean the country off US technology such as Nvidia chips.