Baidu‘s ChatGPT-like product ERNIE Bot was unveiled yesterday and subsequently caused huge fluctuations in its share price.
On the afternoon of March 16th, while the company announced its new application, Baidu‘s Hong Kong-listed stocks fell by 10% to HK $120.1 (about 15.3 $). As of yesterday’s close, however, Baidu share price fell 6.36% to close at HK $125.1. Finally, the company’s share price rose to close at HK $138.16, up 3.8%, reported by YICAI.
Before the Hong Kong stock market opened today, Baidu‘s share price rebounded. Around 15:00 Beijing time, the share price rose by over 12% to HK $142.8 (about 18.2 $).
Zhang Yi, CEO of iiMedia Research, commented on the price action, “The fluctuation of the stock price reflects the contradictory mentality of investors who have both expectations and worries about disappointment for Baidu, Inc.’s AI product.”
He judged that investors and market confidence are obvious in terms of the current performance of Hong Kong stocks. On the one hand, Baidu has technical reserves and foundations surrounding the AI frontier. On the other hand, many AI commercial offerings in the past revolved around toB direction, but this bidding model often reduced prices, resulting in many AI enterprises not making any money. There are, however, still opportunities in toC direction.
When asked about the price fluctuation, ERNIE Bot itself wrote:
“This is normal market performance because investors have different views on the development prospects of conversational artificial intelligence products. Prior to this, Baidu‘s core business was search engines and Internet ads. However, with the gradual disappearance of Internet traffic dividends, the company’s revenue growth is facing certain pressure. The release of ERNIE Bot is considered as a major breakthrough in the field of artificial intelligence in Baidu, which can help the company expand new business areas and enhance its competitiveness and market share.”
It continued, “Therefore, before Baidu had released its ERNIE Bot, the market was optimistic about its prospects, taking the stock price along with it. After the official release of ERNIE Bot, some investors thought that ERNIE Bot did not achieve the expected effect on the market, and the stock price fell. However, in the long run, the development prospects of artificial intelligence and conversational artificial intelligence products are still broad, so investors are still optimistic about the future development of Baidu, and the stock price has also rebounded. “
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ERNIE Bot claims that it is not a perfect artificial intelligence language model, and there is still much room for improvement. For example, the performance of some tasks is not stable, which may be due to its algorithm or the low quality of data sets. In addition, the scope of knowledge is limited by the data and information used.
Nevertheless, some people are still optimistic about ERNIE Bot. With the gradual opening of this product, its effect will be rapidly improved and will be continuously optimized.