Chinese language tech firm Baidu expects that affect from U.S. chip sanctions on its companies might be “restricted,” an organization govt stated on Tuesday throughout a Q&A session of its third quarter earnings name.
In October, the United States imposed export controls limiting American companies from promoting semiconductors and chipmaking tools to Chinese language chip producers.
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“We predict the affect is sort of restricted within the close to future,” stated Dou Shen, govt vice chairman and head of AI Cloud group, in response to an viewers member’s query about how the curbs will have an effect on Baidu’s potential to develop its synthetic intelligence cloud computing arm and autonomous driving companies, which rely on superior AI chips.
“A big portion of our AI Cloud enterprise and even wider AI enterprise doesn’t rely an excessive amount of on the extremely superior chips,” stated Shen.
Baidu additionally runs a robotaxi enterprise, Apollo Go, which has secured permits in Beijing, Wuhan and Chongqing’s Yongchuan District to run a totally driverless business robotaxi service in these locations.
“And for the a part of our companies that want superior chips, now we have already stocked sufficient in hand to help our enterprise within the close to time period,” he stated.
Shen added that Baidu develops its personal AI chip, named Kunlun. He stated Baidu has already began to make use of Kunlun chip to help some large-scale AI-computing duties internally and to serve exterior prospects.
“As a result of now we have full stack of AI capabilities from chips to frameworks to basis fashions and to software software program, we will obtain a lot increased effectivity as we optimize the AI duties from finish to finish,” Shen stated.
He added that automotive chips will not be on the prohibited listing. “So, which means within the close to future, in-vehicle computing isn’t affected,” he stated.
An analyst instructed CNBC’s “Squawk Box Asia” Wednesday that Baidu is “completely” a prime decide, citing chip resilience as one of many causes.
“They’re diversifying the manufacturing into their very own facility and beginning to use their very own chips, Kunlun, for superior purposes,” stated James Lee, a U.S. and China web analyst from Mizuho Securities.
Baidu posted yesterday a better-than-expected acquire in income after value cuts bolstered its backside line. Internet marketing additionally carried out higher than anticipated regardless of difficult financial circumstances reminiscent of Covid restrictions and inflation.
Baidu inventory rose 2.61% Wednesday and is down 35.7% 12 months so far.