The company’s AI ERNIE bot fared best in a recent review.
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The price of BIDU stock has moved to $148.13, but there is some potential for a breakout which could open up a move to $200.
Baidu’s Ernie Chatbot Emerges in China
According to recent testing by the Xinhua Institute, Baidu’s Ernie chatbot ranked the highest among all of the Chinese ChatGPT alternatives. Xinhua ran many tests on the capabilities of the chatbots, including basic language skills, intelligence, knowledge, and logical reasoning applied to the answers.
All of the chatbots tested failed to match the performance of ChatGPT, which was launched in March and integrated by Microsoft earlier this year. In March, Baidu CEO Robin Li said that Ernie bot is at least two months behind ChatGPT and that catching up could take some time. The company made AI a priority and demanded that the best chips owned by the company be diverted to the development of Ernie to ensure a faster launch.
However, according to Xinhua, Ernie bot is already emerging as the best China has to offer. The company can use that head start to get ahead of companies like Alibaba. Baidu has been focusing on AI-related investments for almost ten years, although they are only beginning to bear fruit now.
One example is Apollo, the company’s autonomous driving service, becoming China’s self-driving technology leader. The company has been investing in that segment since 2014. Baidu could also lease its technology to other automakers.
After posting a decade of revenue growth, Baidu saw a decline of 8.5% in 2022, marking the worst year in the company’s history. However, that has held the stock price down, and with a strong comeback from the China reopening, there could be value on a short-and-long-term basis.