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Baidu plans to roll out its own ChatGPT-like service this March. Photo: Shutterstock
TechPolicy

Baidu founder Robin Li bets internet search giant’s future on developing China’s answer to ChatGPT

  • Baidu founder Robin Li says firm is on top of new ‘chat’ trend in artificial intelligence
  • The company also announced plans for a new share repurchase programme of up to US$5 billion
Artificial intelligence
Che Pan
Che Panin Beijing
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Baidu co-founder and chief executive Robin Li Yanhong is betting the company’s future growth on developing an alternative to ChatGPT, the viral chatbot service of US start-up OpenAI, as many of the Chinese internet search giant’s new businesses continue to struggle.
Li, 54, wrote in an internal letter to employees on Wednesday that Baidu was “on top” of this new trend “as the best representative of the long-term growth of China’s artificial intelligence (AI) market”.

Meanwhile, Baidu reported a 1 per cent decline in 2022 revenue to 123.6 billion yuan (US$17.9 bilion) while net profit rose 10 per cent (on a non-GAAP basis) to 20.7 billion yuan. In the fourth quarter, Baidu generated 33.1 billion yuan in revenue, flat against the same period a year earlier, while fourth-quarter net profit grew 32 per cent year on year to 5.37 billion yuan

Baidu on Wednesday also announced a new share repurchase program of up to U$5 billion.

Robin Li Yanhong, co-founder and chief executive of Baidu, said in January that many of the company’s new businesses are still losing money. Photo: AP

“2022 was a challenging year, but we used this period to prepare the company for better times,” Li said. “In 2023, we believe we have a clear path to reaccelerate our revenue growth, and we are now well positioned to make use of the opportunities that China’s economic recovery offers us.”

Li’s internal letter, meanwhile, marked the first time that he has expressed Baidu’s ambition in the field of generative AI after reports surfaced in January that the company plans to roll out a ChatGPT-like service called “Ernie Bot” this March, initially embedding it into the firm’s main search service.

Generative AI refers to algorithms that can be used to create new content, including text, audio, images, video and simulations.

“We are very excited about the opportunities around generative AI,” said Li during an earnings call with analysts late on Wednesday. “We believe that by incorporating Ernie Bot [with] Baidu apps and particularly Baidu search, we will have an enhanced user experience.”

Baidu plans to launch ChatGPT-style bot in March, source says

“AI technology has developed to a critical point, and all walks of life will inevitably be changed,” Li said. “China’s AI market is about to usher in explosive growth in demand.”

Baidu’s Ernie Bot would be similar to how Microsoft Corp, a major investor in OpenAI, has embedded ChatGPT into its search engine Bing.

“The market expects Baidu’s ChatGPT equivalent,” said Kong Huawei, a blockchain chip entrepreneur at Shanghai. “Whether this can deliver what it promises depends on the amount of commercial interest Baidu can generate.”

Other major Chinese tech companies that have touted interest in developing ChatGPT-like services include Alibaba Group Holding, Tencent Holdings and TikTok owner ByteDance. Alibaba owns the South China Morning Post.
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