2024-05-07 05:10:48 ET
Summary
- China's AI goals are ambitious and private companies, like Baidu, will play a key role in achieving them.
- China has been focused on fostering AI technology since 2017 and has implemented supportive regulatory policies.
- Baidu is making strategic moves in integrating AI into its core services and has secured partnerships with regional tech giants.
- In an interesting development, Western tech giants are approaching Baidu to gain access to the Ernie bot and other AI capabilities of Baidu.
- Baidu, despite being a profitable business and attracting more users than ChatGPT, is valued at nearly half the value of OpenAI today.
China may be late to the AI party. Better late than never, they say. China's AI goals are ambitious, and private companies in the country will play a key role in helping the nation achieve these goals. Baidu, Inc. ( BIDU ) has emerged as the frontrunner in China's AI space. Last November, I upgraded Baidu as I found the company very attractively valued at a time when its AI investments were beginning to yield tangible returns. Since then, Baidu stock has gained a meager 0.7% while the S&P 500 has surged 14% higher. Last March, after digesting Baidu's Q4 performance, I thought investors would have to be patient despite the company moving in the right direction to achieve my long-term expectations. The company's cheap valuation and attractive long-term prospects in the field of AI were at the center of my investment thesis....
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Baidu Is Poised To Make The Most Of China's AI Comeback