Baidu Inc. shares jumped in Hong Kong following reports that it will soon launch a large-language model to power its ChatGPT-Like app Ernie Bot.
The shares rose as much as 6% before trimming as Chief Executive Officer Robin Li was cited as saying that the model will be used to upgrade its search engine. Other artificial intelligence stocks including SenseTime Group Inc. and Meitu Inc. gained at least 3% each.
Baidu shares have had a rough ride this year as a rally driven by the hype ahead of Ernie’s demo launch in March faltered on disappointment. The latest development, if successful, could add impetus to the shares and help the firm ride on a renewed global AI frenzy after Nvidia Corp.’s surprisingly strong revenue forecast.
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“Investors have been waiting for an update on Ernie Bot. Also the AI frenzy has spread to China markets on Monday after Nvidia’s good results,” said Steven Leung, executive director at UOB Kay Hian. Hong Kong markets were closed Friday.
Even with Monday’s gains, Baidu shares are down more than 25% from a February high as its chatbot — China’s first answer to ChatGPT - failed to match high expectations.
The Chinese internet giant debuted Ernie Bot through several pre-recorded videos in March, defying 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 have also questioned Baidu’s ability to launch a Chinese language AI model. A Baidu spokesperson declined to comment further when contacted by Bloomberg on Monday.
Baidu was one of the best performers on the Hang Seng gauge of Chinese tech shares, which reversed a 1.6% rise. Baidu shares pared its advance to less than 3% as of 11:43 a.m. in Hong Kong.
--With assistance from Zheping Huang.
