Tech giant from China, Baidu, is going after Apple and other app developers due to the creation of fake copies of Ernie AI chatbot.
Its stock price went down by -4.13% to $139.00 on Monday. However, it is expected to rise by 0.14% to $139.19 in the upcoming session.
The company claimed Apple allowed the knockoffs into its strictly controlled App Store. Analysts say the iPhone maker approved the fake applications for users after Baidu introduced it in less than a month.
Currently, Ernie has no official app unless announced officially, meaning any store applications are fake, Baidu said.
Based on the company’s statement, counterfeits have invaded the market, having fake copies in the app store. As a result, the firm hopes for Apple to remove similar applications and prevent further creation.
On March 16, Ernie Bot was released as a competitor to OpenAI’s ChatGPT. Still, it is only available to a selected number of users. The bot aims to focus on Chinese markets and can respond in various local dialects. Also, it can generate images and videos from Chinese text and summarize a whole Chinese novel.
Unlike ChatGPT, the Baidu bot is only accessible to users invited to test it. As a result, its shares plummeted.
M&G Investment Lowered its Place in Baidu
During the fourth quarter of last year, M&G Investment Management reported lowering its position in Baidu by a 59.20% drop. Based on a filing, the investor dumped 241,408 shares, ending up with only 166,108 shares. It was worth $18,936,000.00 by the end of the quarter.
Also, other hedge funds are weakening their exposure to Baidu in the past months. However, others may find it shocking, especially investors who were bullish on the company’s hopes.
Additionally, it showed vital liquidity ratios with a quick and current one of 2.67 each.
Generally, as others reduce exposure to Baidu, it maintains its well-capitalized and has sound financial ratios.
