Baidu Inc. Plans to Launch AI Chatbot-like Service in China

Based on a person familiar with the matter, Baidu Inc. is planning to launch an artificial intelligence chatbot service similar to OpenAI's ChatGPT, potentially becoming China's most prominent entry in a race sparked by the tech phenomenon.

According to the person who requested anonymity to discuss private information, China's largest search engine company plans to launch a ChatGPT-style application in March, initially embedding it into its main search services. The unnamed tool will provide users with conversation-style search results similar to OpenAI's popular platform.

The stock rose as much as 5.8% after the report, the largest intraday gain in nearly four weeks.

Baidu has spent billions of dollars on artificial intelligence research in a multi-year effort to transition from online marketing to deeper technology. According to the source, its Ernie system — a large-scale machine-learning model that has been trained on data over several years — will serve as the foundation for its upcoming ChatGPT-like tool. A representative for Baidu declined to comment.

Since its public debut in November, ChatGPT, OpenAI's artificial intelligence tool, has lit up the internet, amassing over a million users in days and sparking a debate about the role of AI in schools, offices, and homes. Companies such as Microsoft Corp. are investing billions of dollars to try to develop real-world applications, while others are using the hype to raise funds. Buzzfeed Inc.'s stock nearly doubled this month after the company announced plans to incorporate ChatGPT into its content.

Much of China's internet is controlled by Baidu, Alibaba Group Holding Ltd., Tencent Holdings Ltd., and ByteDance Ltd. The search company has been attempting to resurrect growth in the mobile era after falling behind its larger competitors in areas such as mobile advertising, video, and social media. Aside from AI research, Google is now working on autonomous driving technology.

During an internal meeting in December, Baidu CEO Robin Li mentioned ChatGPT as an example of where the tech giant can take the lead, according to a transcript viewed.

“I’m so glad that the technology we are pondering every day can attract so many people’s attention. That’s not easy,” he said. He warned that the commercialization of generative AI by making it a “product that everyone needs” could be challenging though.

ChatGPT piqued the interest of Chinese internet users, who, like others, shared screenshots of unexpected conversations with the AI bot on local social media. Despite a heavily censored domestic internet that is largely cut off from the rest of the world, companies like Baidu have thrived as local equivalents to Google, Amazon, and Facebook.

Aside from Baidu, several Chinese startups are experimenting with generative AI and have attracted investors such as Sequoia and Sinovation Ventures.