Baidu, Inc. BIDU shares are trading lower despite the company unveiling its Ernie 4.0 AI model. The stock appears down alongside other Chinese stocks amid possible U.S.-China tensions after the U.S. announced plans to halt shipments of more advanced AI chips to China.
What To Know: According to Reuters, the Biden administration has detailed its intentions to halt the export of more advanced artificial intelligence chips to China. The rationale behind the plan is to curtail China’s development of artificial intelligence technologies, as U.S. officials are concerned that China will use it for military purposes.
The announcement is the latest development in the ongoing economic tensions between the U.S. and China, which have been growing for some time.
Baidu, which has been seeking to advance its AI goals, may be greatly impacted by the restrictions.
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BIDU Price Action: Shares of BIDU were down 4.44% at $119.37 at the time of publication, according to Benzinga Pro.
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