Posted 1/15/2024, 9:43:02 AM
Baidu Stock Plunges Over 11% on Report Linking AI to Chinese Military, Raising US Sanctions Fears
- Baidu's stock plunged over 11% due to a report linking its Ernie AI to Chinese military research, raising concerns about potential US retaliation
- Baidu denied having any affiliation or partnership with the military-affiliated research institute mentioned
- The report still raised worries that Washington may consider sanctions on Chinese firms over AI collaboration with military
- Baidu was an early leader in developing a ChatGPT-style AI bot called Ernie, which has attracted 100M users after public rollout
- Investors are also concerned about Baidu's fundamentals deteriorating amid a Chinese economic downturn, with AI revenues still small