Baidu Stock Is Falling Tuesday: What's Going On?

Baidu Inc BIDU shares are trading lower Tuesday after the company responded to recent media reports linking the company’s large language model (LLM) to key military research in China.

What Happened: The South China Morning Post first reported that Baidu’s Ernie Bot AI platform was being tested by a university affiliated with the People's Liberation Army's Strategic Support Force.

Baidu responded to the reports noting that it had not engaged in any business collaboration or provided any services to authors of the academic paper or any institutions that they might be affiliated with.

“ERNIE Bot is available to and used by the general public. The academic paper, published by scholars at a Chinese university, described how the authors built prompts and received responses from LLMs, using the functions available to any user interacting with generative AI tools,” the company said.

Baidu noted that The South China Morning Post clarified and corrected their original media report and said it’s committed to operating its AI platform in compliance with all applicable laws and regulations.

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BIDU Price Action: Baidu shares were down 4.27% at $104.45 at the time of publication, according to Benzinga Pro.

Photo: Lukas from Pixabay.