Baidu

Baidu Launches Ernie AI Version to Compete with GPT-4

Baidu (9888. HK) introduced the latest version of its generative artificial intelligence (AI) model, Ernie 4.0, on Tuesday, claiming that its capabilities were on par with those of ChatGPT creator OpenAI's pioneering GPT-4 model.

CEO Robin Li unveiled Ernie 4.0 at a Beijing event, emphasizing the model's memory skills and demonstrating it by authoring a martial arts book in real time. He also demonstrated Ernie 4.0 by making promotional posters and videos.

Analysts were underwhelmed. According to Lu Yanxia, an analyst at industry research IDC, the debut of Ernie 4.0 lacked substantial highlights compared to the previous edition.

Baidu's Hong Kong shares slumped 1.32% in early trade, behind the Hang Seng Index's (.HIS) 0.7% increase.

"We should see significant improvements once Ernie 4.0 is used hands-on, but concrete upgrades aren't immediately clear," he added.

Other significant revelations from the event, according to Lu, were Baidu's integration of generative AI throughout all of its products, including Baidu Drive and Baidu Maps.

Li illustrated how Baidu Map now allows users to access functionalities with natural language queries powered by Ernie, whereas users previously had to search through hundreds of possibilities.

Baidu, the owner of China's largest internet search engine, is at the vanguard of AI models in China, amidst a global frenzy spurred by the release of ChatGPT last year.

In March, the company introduced ErnieBot, a chatbot powered by Ernie, but investors were dismayed to see just pre-recorded demonstrations.

Baidu was one of several companies that received regulatory authorization to distribute AI products to the public in August. Ernie has 45 million users since it was made public, according to Baidu's chief technology officer Wang Haifeng, who spoke at the occasion.

According to statistics from brokerage CLSA, China already possesses at least 130 large language models (LLMs), accounting for 40% of the world total and trailing only the United States 50%.

Beijing announced suggested security standards for companies selling AI-powered services last week, including a blacklist of sources that cannot be used to train AI models.