Chinese AI company's stock experiences a boost of 16% due to a significant agreement
Baidu, the Chinese technology giant, has seen a significant surge in its stock price, reaching a new 52-week high of 131.90 Hong Kong dollars. This price surge is a result of investors' enthusiasm about Baidu's ambitious AI plans and a new strategic partnership.
The strategic partnership is with the state-owned China Merchants Group, aiming to develop large language models, AI agents, and digital employees. This partnership is part of Baidu's aggressive drive to advance its AI business, with the Ernie Bot at the heart of the strategy.
The Ernie Bot plays a crucial role in the highly competitive Chinese AI landscape. Baidu's recent announcement about the issuance of an offshore bond worth over 4.4 billion yuan (around $562 million) with a maturity of 2029 further underscores its commitment to these ambitious AI plans.
Following reports that Baidu started using a self-developed chip to train versions of its large Ernie language models, reducing dependence on Nvidia chips, its shares in Hong Kong rose by about 16.5%. This move has put Baidu in the spotlight, as it strives for scalable and sustainable progress in industrial AI.
The competition for dominance in artificial intelligence is intensifying in China. Another Chinese AI player, Tencent, is also investing heavily and has raised capital through bond sales this year. Tencent, alongside Baidu, is one of the Chinese AI players pouring billions into the AI race.
The Aktien-Report 'China-Knaller 2.0' reveals which stocks are benefiting exceptionally from the AI boom in China, according to China expert Michael Diertl. The Aktien-Report China-Techgiganten Index bundles eight renowned Chinese companies setting standards in areas like artificial intelligence, cloud computing, fintech, and e-commerce.
As Baidu's stock price continues to climb, the 2023 October high at 133.50 HKD and the 140-HKD mark are now in focus. For more information about the Aktien-Report China-Techgiganten Index, click here.
