Why Is Baidu Stock Trading Higher Thursday? – Baidu (NASDAQ:BIDU)

Baidu, Inc (BIDU) stock is experiencing an uptrend on Thursday, following the broader trends of the IShares China Large-Cap ETF (FXI). This rise comes in response to reports that China’s central bank is committed to providing further financial aid to businesses and critical sectors. The aim is to strengthen employment, stabilize the real estate market, and ensure the stability of the Yuan.

In the midst of this positive news, Baidu’s ChatGPT-like Ernie Bot has achieved a significant milestone with over 100 million users. Wang Haifeng, the chief technology officer of Baidu, made this announcement at a deep learning summit in Beijing. The release of Ernie Bot to the public in August, after a trial period and partial unveiling, allowed select users to explore its capabilities.

Initially, the unveiling of Ernie Bot was met with some underwhelming responses from analysts. However, it provided Baidu with a valuable first-mover advantage in the competitive market of generative AI chatbots. This market expansion in China follows the successful launch of OpenAI’s ChatGPT in the United States, which quickly became the world’s fastest-growing software application within six months.

As a result, OpenAI has been valued at over $80 billion, and Microsoft Corp (MSFT) has invested $13 billion in a for-profit subsidiary, acquiring a 49% stake. Baidu’s CEO, Robin Li, has been actively promoting Ernie Bot and its related products as tools that can enhance the company’s market share across its core businesses, including search engine services, cloud services, and smart car technologies.

In a recent evaluation by SuperCLUE, which assesses generative AI-powered chatbots, Ernie Bot was ranked as the leading chatbot in China. However, it scored lower than the latest version of ChatGPT, highlighting the competitive landscape in the generative AI chatbot sector and Baidu’s position within it.

In terms of price action, BIDU shares traded higher by 2.03% at $116.71 in the premarket session on Thursday.

It is important to note that this content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

In conclusion, Baidu’s stock is experiencing an upward trend in response to positive news about China’s financial aid commitment. Additionally, the milestone achievement of over 100 million users for Baidu’s Ernie Bot showcases the company’s potential in the competitive market of generative AI chatbots. With Baidu’s CEO actively promoting these products, the company aims to enhance its market share and solidify its position across various core businesses.

Leave a Reply

Your email address will not be published. Required fields are marked *