Baidu "Own Chatbot 'Ernie Bot' Integrated into Search Engine"... Catching Up with ChatGPT?

"Strengthening Search Engines and Online Advertising"
OpenAI Likely to Target Niche Markets by Avoiding Entry into the Chinese Market

[Asia Economy Reporter Hyunwoo Lee] Baidu, China's largest search engine, officially announced that it will embed its self-developed artificial intelligence (AI) chatbot, 'Ernie bot,' into its search engine and launch it next month. This is interpreted as a strategy to target the vast domestic market in China, especially since OpenAI, the developer of ChatGPT, does not accept users from U.S. adversary countries such as China, Russia, and Iran.

The appearance of Robin Li, co-founder and CEO of Baidu.
[Image source=Reuters·Yonhap News]

According to the Associated Press on the 22nd (local time), Robin Li, CEO of Baidu, stated during Baidu's Q4 earnings conference call held that day, "We will launch Ernie bot, our self-developed AI chatbot, embedded in the search engine starting in March," adding, "Ernie bot will be integrated into all of Baidu's operations, including the search engine and cloud services." Baidu is also reportedly planning to install Ernie bot in its self-developed fully autonomous vehicle program and AI speakers in the future.

CEO Li explained, "Baidu has the advantage of being a pioneer in the Chinese market, and more than 400 companies have already joined the Ernie bot community as early users since early last month," adding, "Ernie bot will enhance user experience and significantly expand the search engine market size. Online advertising could also become more active."

In particular, since OpenAI, the developer of ChatGPT, does not accept user registrations from U.S. adversary countries such as China, Hong Kong, Russia, and Iran, competition among Chinese IT companies targeting the domestic market is expected to intensify. Previously, e-commerce companies Alibaba and JD.com announced plans to develop ChatGPT-style tools, and Baidu's competitors such as Tencent and ByteDance are also expected to rush into the AI chatbot market.

Meanwhile, Baidu also reported strong Q4 earnings last year. Q4 revenue was 33.1 billion yuan (approximately 6.25 trillion KRW), exceeding the market expectation of 32.1 billion yuan. Net profit also recorded about three times the amount compared to the same period last year, reaching 5 billion yuan.