Hong Kong-listed shares in Chinese search engine giant Baidu (NASDAQ:BIDU) rebounded by 15.7% on Friday, recouping losses from a day earlier prompted by the launch of its new chatbot, Ernie. The recovery came after users shared positive experiences with the bot, which had failed to impress during its launch.
On Thursday, viewers of Baidu’s presentation criticized the company for its lack of a live demonstration and public launch for Ernie, comparing it unfavorably to the capabilities and free-to-use launch of the U.S. research lab OpenAI’s ChatGPT in November.
Ernie, which stands for “Enhanced Representation through kNowledge IntEgration,” is a language model designed to answer questions and carry out tasks in Chinese. The chatbot is designed to have a more natural and conversational tone, and to be more accurate than Baidu’s previous chatbot, Duer.
While Ernie’s launch was met with disappointment, it appears that users have since had more positive experiences with the bot. The rebound in Baidu’s shares on Friday suggests that investors are hopeful about the potential of Ernie to drive growth and revenue for the company.
It’s worth noting that the chatbot market is a highly competitive one, with tech giants like Amazon, Google, and Microsoft all investing heavily in the development of their own bots. However, Baidu has the advantage of being one of the largest search engine providers in China, giving it a large user base to tap into.
As for the implications for Baidu’s stock, it’s likely that investors will be keeping a close eye on the company’s ability to continue improving and developing Ernie, as well as its ability to compete in the highly competitive chatbot market.
In summary, Baidu’s Ernie bot initially faced criticism for its lackluster launch, but users have since shared positive experiences with the language model. This led to a rebound in Baidu’s shares on Friday, highlighting the potential for Ernie to drive growth and revenue for the company in the highly competitive chatbot market.