Baidu Denies Military Links as Stock Plummets

Investor Fears of U.S. Sanctions Drive Stock Drop Amid Controversy Over AI Technology

Baidu's stock plummeted after a report suggested a link between its AI technology, Ernie, and the Chinese military.
The report, published by the China Morning Post, cited an academic paper that claimed a Chinese military-affiliated university had tested its AI system on Baidu's Ernie.
Baidu has denied any affiliation or partnership with the academic institution and stated that if Ernie was used, it would have been the publicly available version.
Investors are concerned that any potential affiliation with the Chinese military could attract sanctions from the U.S., especially as both countries explore military applications of AI.
The incident highlights the difficulty tech companies face in maintaining a distance from their national militaries while developing and deploying dual-use technologies such as generative AI.