Despite the setback, Baidu recently announced that its AI chatbot, Ernie bot, has reached 100 million users. The bot, similar to OpenAI's ChatGPT, received regulatory approval for mass rollout in August, indicating Baidu's success in the AI field. However, the company did not specify if the 100 million users were active or from a certain period. Baidu's shares closed 3% higher in US trading following the announcement.
Key takeaways:
- Baidu has canceled its $3.6 billion acquisition of JOYY Inc.'s China live-streaming subsidiary, YY Live, due to regulatory roadblocks and unmet terms of the share purchase agreement.
- The failed deal is a significant setback for Baidu's plans to participate in the online entertainment market and diversify its revenue sources, and reflects China's increasing regulatory scrutiny over big data and monopolies.
- Despite the challenges in its diversification efforts, Baidu recently announced a significant milestone with its AI chatbot, Ernie bot, surpassing 100 million users.
- Baidu's shares closed 3% higher in US trading following the announcement, maintaining a modest uptrend for 2023.