Baidu Inc. shares rose in Hong Kong after billionaire founder Robin Li said it will soon launch a new version of the big-language model that powers its ChatGPT-style service.
Shares rose 6% before the trimming as CEO Li said the model will be utilized to upgrade the technology behind its suite of artificial intelligence products, including the ChatGPT-like Ernie Bot. Other AI stocks such as SenseTime Group Inc. and Meitu Inc. rose at least 3% on the Nasdaq Stock Market.
The company said in a Beijing event that large-language models will give birth to AI-native applications. The company will become the first company to rework all of its products. It is not about integrating or accessing AI. It's about reworking and restructuring. The stock market has had a rough ride this year as a rally driven by the hype ahead of Ernie's demo launch in March. The new development, if successful, could add impetus to the shares and help the company ride on a renewed global AI frenzy after Nvidia's surprisingly strong revenue forecast.
Investors are waiting for an update on Ernie Bot. The AI frenzy has spread to China markets on Monday after Nvidia's good results, said Steven Leung, executive director at UOB Kay Hian. Even with Monday's gains, Baidu shares are down more than 25 percent from a February high as its chatbot - China's first answer to ChatGPT - failed to match high expectations.
In March, the Chinese internet giant debuted Ernie Bot through several pre-recorded videos, versus expectations for a real-time demo, and later delayed a press briefing planned to showcase how the chatbot will be integrated into cloud computing service. Investors are also concerned about Baidu's ability to launch a Chinese language AI model.
Baidu was among the best performers on the Hang Seng gauge of Chinese tech shares, which reversed a 1.6% rise. In Hong Kong, Baidu shares pared their gain to less than 3% as of 2:07 p.m. on the Nasdaq Stock Exchange.
Ernie Bot is currently only available to select users. China's government has said that any generative AI service would need approval before it is launched in the world's largest internet hub.
On Friday, Li said that countries with AI technology should work together and formulatize rules to prevent it from getting out of control, along with calls from peers OpenAI Inc. and Alphabet Inc. s Google for more oversight over the nascent sector.
What are you re the CEO and your company got hacked?