Baidu Shares Drop on Report of China Military Testing AI Models
• Baidu shares fell nearly 8% after report linked its Ernie AI to testing by Chinese military • South China Morning Post said research lab tied to PLA Strategic Support Force tested Ernie and iFlyTek's Spark models • Baidu said it has no affiliation with the lab and any Ernie version used was likely public • Report raises concerns that PLA ties could bring US sanctions amid exploration of AI military uses • Headwinds for China's AI ambitions include US ban on selling key AI chips to Chinese entities