Jiahui Huang
Shares of Baidu rose sharply in Hong Kong after reports of possible collaboration involving artificial intelligence between the Chinese tech giant and smartphone giant Apple.
The Wall Street Journal reported last week that Apple had held preliminary talks with Baidu about using its AI tech. On Monday, Chinese media outlet Cailian Press reported Baidu was set to become Apple’s local generative AI model provider for the iPhone 16, the Mac computer operating system and the upcoming mobile operating system iOS 18.
Baidu shares climbed 5.4% on Monday. Hong Kong’s benchmark tech index was down 0.2%. Baidu and Apple didn’t immediately respond to requests for comment.
Chinese regulators have to approve generative AI models before they can be launched to the public. Baidu’s Ernie Bot is one of more than 40 models that have already been approved.
“If it does come true, it would be a perfect branding campaign for Baidu and its AI product, Ernie Bot,” Nomura analyst Jialong Shi told Dow Jones Newswires.
Such an endorsement from Apple would be a big boost for Baidu amid intensifying competition among LLM producers in China. Leading players in this field such as OpenAI’s ChatGPT and Google’s Gemini aren’t available in the country.
The Chinese search-engine company’s efforts to develop AI have exceeded analysts’ expectations, with faster-than-anticipated monetization, analyst Ann Romain from the Zephirin Group said in a research note.
Baidu Chief Executive Robin Li said the company’s AI cloud businesses will likely be a main revenue driver in 2024, projecting that revenue will rise sharply to “several billion yuan.”
Daiwa analyst John Choi said the potential partnership with Apple would help Baidu further monetize its AI initiatives.
“Recognition from a global tech powerhouse like Apple” would give Baidu the edge it needs to stay above its Chinese competitors, Nomura’s Shi said.
No comments:
Post a Comment