Baidu is setting the pace for AI work for other tech giants in China.
Chinese internet giant Baidu Inc (HKG:9888) saw its share price skyrocket today after announcing better-than-expected earnings. Baidu impressed its investors as one of the biggest tech giants that saw profitability soar after the Chinese economy reopened after a year-long Covid-19 restrictions.
According to data shared by the company, it said it reported revenue of 31.1 billion yuan ($4.5 billion) for the three months ending in March. While this revenue is impressive when compared to analyst projections which were pegged at 30 billion yuan. according For the company, accrued revenue from Baidu Core, its business unit that features search-based ad sales, cloud offerings and self-driving initiatives, grew 8% to 23 billion yuan.
As analysts from Barclays noted before Baidu’s results were released, it was revealed that “the company’s advertising activity saw a nice recovery in demand especially after Chinese New Year, and the recovery may have accelerated as we head into the second quarter.”
The analysts claimed that they “remain optimistic about China’s economic recovery and the outlook for the advertising industry for 2023”. The company’s performance metrics were also well reported with net income of 5.8 billion yuan. This growth has been registered, thanks in part to the gains it has made on its investments.
Not only is Baidu a major technology company in the country, it has also been one of the companies hit hardest by the broader regulatory crackdown imposed on technology companies by the government. Investors’ bet that technology stocks will rebound appears to be paying off, with Baidu shares being used as a primary test.
For its performance, the stock jumped 2.81% in Hong Kong, and the price is fixed at 124.30 HK dollars.
Baidu revenue and pay diversity
Despite Baidu’s role primarily as an Internet and marketing company, it does not limit its innovations to this discipline. In fact, Baidu has seen its revenue up slightly due to its diversification and the company comes as the first major internet giant in China to showcase its response to ChatGPT, the OpenAI chatbot that has gained immense popularity since last year.
Dubbed the Ernie Bot, Baidu’s goal for the new AI tool is to be ubiquitous and integrated into as many systems as possible. Some of the featured outfits include megaphones, self-driving cars, smart speakers, and more.
“We can buy computing power but not the ability to innovate,” said Robin Li, the billionaire founder of Baidu. inner speech recently, adding, “It’s just the beginning of this arena for technical competition.”
With its potential, Baidu is setting the pace in the AI landscape for other tech giants in China to follow.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-world applications of blockchain technology and innovations to drive public acceptance and global integration of the emerging technology. His desires to educate people about cryptocurrencies have inspired his contributions to popular blockchain-based media and websites. Benjamin Godfrey is a fan of sports and farming.
