© Reuters. Baidu (BIDU) Samsung’s Galaxy S24 smartphones to use Baidu’s AI chatbot Ernie; Analyst positive
Samsung’s new Galaxy S24 smartphone lineup is set to feature Chinese tech giant Baidu’s (BIDU) AI chatbot Ernie in a collaboration that will provide a range of AI-powered features that Samsung (KS:) hopes will help it outperform Apple’s (AAPL) newest iPhones.
Real-time translation of calls, advanced summarization of content and a ‘circle to search’ function are some of the key AI features that Ernie will power. The latest version of the chatbot, Ernie 4.0, launched in October last year, uses AI to provide intelligent, well-reasoned, human-like responses to prompts from users.
“Now featuring Ernie’s understanding and generation capabilities, the upgraded Samsung Note Assistant can translate content and also summarize lengthy content into clear, intelligently organized formats at the click of a button, streamlining the organization of extensive text,” the two organizations said in a statement, as reported by CNBC.
Following the announcement, Morgan Stanley issued a note Monday saying the collaboration is a recognition of Baidu’s AI leadership in China, and reiterating its view of Baidu (NASDAQ:) as “the best AI play in China’s Internet Industry.” It expects Baidu’s cloud revenue to grow 15% YoY in 2024 and maintains its ‘Overweight’ rating on the stock.
“We believe this is just the beginning of a long-term AI collaboration. We believe the current AI cloud integration between Galaxy AI and Ernie is just the first step. Though current monetization scale could be limited, we expect there could be further expansion into other phone models, or potential development into an edge AI model in the long run, which is an untapped market as of now (i.e., processing of data and algorithms directly from an endpoint device without an Internet connection),” analysts said in a note to clients.
Baidu’s shares are down 0.64% at $106.97 at midday on Monday.
