Chinese tech giant Alibaba is planning to list its chipmaking arm, T-Head, with a potential IPO in the future. The unit, founded in 2018, develops processors for various applications like data centers and AI. Alibaba’s U.S. shares surged 4.6% on the news, but the exact timing and valuation are still uncertain.

Alibaba intends to restructure T-Head as a partially employee-owned business before exploring an IPO. The process is in the early stages, and the unit’s value remains unknown. In November, Alibaba upgraded its AI chatbot with a consumer app using its advanced Qwen language model to compete in China’s AI sector.

While the potential IPO of T-Head Semiconductor is in the works, Alibaba has not confirmed details. The unit focuses on developing a wide range of processors, from AI chips to IoT products. The exact timeline and valuation for the IPO are still up in the air, according to reports.

Read more at Yahoo Finance: Alibaba to plan IPO for AI chipmaking unit T-Head, Bloomberg News reports