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

“We expect the affect is sort of restricted within the close to future,” Dou Shen, govt vp and head of Baidu AI Cloud, mentioned of the U.S. chip export controls.

Jade Gao | Afp | Getty Photographs

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

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

“We expect the affect is sort of restricted within the close to future,” mentioned Dou Shen, govt vp 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 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 assist 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 assist some large-scale AI-computing duties internally and to serve exterior clients.

“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 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 aren’t on the prohibited record. “So, which means within the close to future, in-vehicle computing just isn’t affected,” he mentioned.

An analyst advised CNBC’s “Squawk Field Asia” Wednesday that Baidu is “completely” a prime decide, 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 functions,” mentioned James Lee, a U.S. and China web analyst from Mizuho Securities.

Baidu posted yesterday a better-than-expected achieve in income after price cuts bolstered its backside line. Internet marketing additionally carried out higher than anticipated regardless of difficult financial situations resembling Covid restrictions and inflation.

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

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