Apple relies on AI services from Baidu in China

China's regulatory authorities require AI developers to pass a rigorous examination before their revolutionary models can see the light of day.

3/25/2024, 5:00 PM
Baidu
989.74CNY
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Eulerpool News Mar 25, 2024, 5:00 PM

Baidu Shares Surge in Hong Kong After Reports of Potential AI Collaboration with Smartphone Giant Apple

Shares of Baidu, the Chinese technology titan, saw a marked increase in Hong Kong after reports of a potential collaboration in the field of artificial intelligence (AI) with smartphone giant Apple came to light. Speculations that Baidu could become Apple's local provider for generative AI models for the iPhone 16, the operating system of the Mac computers, and the upcoming mobile operating system iOS 18 boosted the share price. According to a report by The Wall Street Journal, Apple conducted preliminary talks with Baidu about using its AI technology. Another report by the Chinese media company Cailian Press reinforced the rumors. Subsequently, Baidu's shares increased by 5.4% on Monday, while the benchmark technology index in Hong Kong fell by 0.2%.

In China, generative AI models must be approved by regulatory authorities before their public launch. Baidu's Ernie Bot is among over 40 models that have already received approval. Such a partnership with Apple would significantly strengthen Baidu amidst the increasing competition among producers of Large Language Models (LLM) in China. Leading players in this field, such as OpenAI's ChatGPT and Google's Gemini, are not available in the country.

Analysts Impressed by Baidu's Advances in AI. The Company's Development and Faster-than-expected AI Monetization Exceed Expectations. Robin Li, CEO of Baidu, Announced That the Company's AI Cloud Businesses Are Expected to be a Major Revenue Driver by 2024, with a Strong Surge in Income to "Several Billion Yuan". Recognition by a World-leading Technology Company like Apple Would Not Only Give Baidu a Significant Advantage in China but Also Strengthen Its Position in the Global Competition.

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