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China’s Baidu says it expects ‘restricted’ affect from U.S. chip curbs | NEWSRUX

“We predict the affect is kind of restricted within the close to future,” Dou Shen, government vice chairman and head of Baidu AI Cloud, mentioned of the U.S. chip export controls.

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Chinese language tech firm Baidu expects that affect from U.S. chip sanctions on its companies will probably be “restricted,” an organization government mentioned on Tuesday throughout a Q&A session of its third quarter earnings name.

In October, the USA imposed export controls limiting American companies from promoting semiconductors and chipmaking gear to Chinese language chip producers.

“We predict the affect is kind of restricted within the close to future,” mentioned Dou Shen, government 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 capacity 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,” mentioned Shen.

Baidu additionally runs a robotaxi enterprise, Apollo Go, which has secured permits in Beijing, Wuhan and Chongqing’s Yongchuan District to run a completely driverless business robotaxi service in these locations.

“And for the a part of our companies that want superior chips, we have now already stocked sufficient in hand to help our enterprise within the close to time period,” he mentioned.

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Shen added that Baidu develops its personal AI chip, named Kunlun. He mentioned 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 we have now full stack of AI capabilities from chips to frameworks to basis fashions and to software software program, we are able to obtain a lot increased effectivity as we optimize the AI duties from finish to finish,” Shen mentioned.

He added that automotive chips usually are not on the prohibited listing. “So, because of this within the close to future, in-vehicle computing shouldn’t be affected,” he mentioned.

An analyst informed CNBC’s “Squawk Field Asia” Wednesday that Baidu is “completely” a high choose, citing chip resilience as one of many causes.

James Lee on Baidu's chip resiliency

“They’re diversifying the manufacturing into their very own facility and beginning to use their very own chips, Kunlun, for superior purposes,” mentioned 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 advertising additionally carried out higher than anticipated regardless of difficult financial circumstances corresponding to Covid restrictions and inflation.

Baidu inventory rose 2.61% Wednesday and is down 35.7% 12 months to this point.

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