AI and Cloud Magnifies Baidu’s Q4 2020 Earnings
AI and Cloud are on the roll. Baidu INC. Is a Chinese Multinational Company, One of the Largest AI and Internet Companies in the World.
What is the Role of AI and Cloud?
AI and Cloud implications benefit companies in cost-effectiveness, optimizing productivity, data accessibility/reliability, and providing an advanced infrastructure. Companies have started discarding the traditional methods, which were often time-consuming and led to a waste of human resources. Moreover, the data backed up on Cloud ensured companies’ safety in the case of any mishap.
According to the latest GlobalData report, “Baidu reported revenue of CNY (Chinese Yuan) 30,263 M in Q4 2020. There was an increase of 7.2% over CNY 28,232 M in Q3 2020, which was above the earnings expectations. The growth came from the huge demand for artificial intelligence (AI) and cloud services, coupled with the recovering macroeconomic environment. There was a substantial 52% y-o-y increase in core non-marketing revenue, which mainly included cloud and other services.”
Baidu is established in AI research with a wide and diverse developer community on its Open AI Platform, with about 2.65 million people. This made Baidu the largest Chinese firm with the highest number of AI patents and patent applications. Proper investment in the R&D of the company led to best-in-class AI product designs, enabling the developers to keep innovating new AI applications.
AI and Cloud Applications
Companies have realized that implementing AI in the business model would manage the resources in a cost-efficient way, which is why there are many emerging companies providing AI solutions. Venture Capitalist Investors are paying a lot of attention to the potential in these startups as well. The market for AI-based platforms is expected to reach USD 52 billion by 2024, according to Thematic Research by GlobalData.
Considering these factors, Baidu looks forward to establishing an EV (electric vehicle) company in partnership with Geely, to take a step further in automation solutions. Autonomous driving is becoming a trend in today’s market, and Baidu wishes to be a contributor in that sector.
The report also quotes – “The company, with its Cloud services, AI capabilities, Apollo intelligent driving technology in the demanding EV market and focus on non-core operations, is ready to give a tough competition to its peers.”
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