Market's treating legacy internet companies like trash—even when they're sitting on AI gold.

Kuaishou (KWAI) market cap: $29B

Their AI video unit Kling if spun out? $20B valuation.

Goldman says the market's only pricing Kling at $5B inside Kuaishou. That's a $15B haircut just for having an internet parent company.

Same story with Baidu:

• Kunlun AI chip unit embedded value: $15-18B

• JPM's standalone valuation: $40-49B

The market literally punishes you for being bundled with Web2 infrastructure. AI spin-offs = instant re-rate. This is the alpha: watch for carve-outs and SPACs in this space. Legacy tech discount is real and massive.