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On Tuesday, the company unveiled ERNIE 4.0, the newest version of its artificial intelligence chatbot that it directly compared to thelatest iterationof OpenAI’s ChatGPT.

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Li said the demonstrations showed how the bot had been “significantly improved” in terms of its understanding of queries, generation of complex responses and memory capabilities.

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“But today, it understands almost everything you say, and in many cases, it understands what you’re saying better than your friends or your colleagues.”

Charlie Dai, vice president and research director of technology at Forrester, said Baidu is “the first vendor in China” to claim it could perform as well as GPT-4.

“We still need more benchmarking evidence to prove it, but I’m cautiously optimistic that this is China’s GPT-4 moment, giving its long-term investment in AI [and machine learning],” he told 【 - Free Access to Community with 300% Return 】.

In contrast to apre-recorded presentationin March that failed to impress investors, Li demonstrated the bot in real time.

Investors appeared unmoved, however, with Baidu’s shares down 1.4% in Hong Kong following the presentation.

Baidu (BIDU) has been a frontrunner in China in the race to capitalize on the excitement around generative AI, the technology that underpins systems such as ChatGPT or its successor, GPT-4.

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ERNIE Bot has quickly gained traction, racking up more than 45 million users after reaching the top of Chinese app stores at one point, according to the company. ChatGPT, whichwas releasedlast November, surpassed 100 million users in its first two months, according to a March report by Goldman Sachs analysts.

Baidu faces competition within China, from companiessuch asAlibaba (BABA) and SenseTime, which have also shown off their own ChatGPT-style tools.

Baidu says its service stands out because of its advanced grasp of Chinese queries, as well as its ability to generate different types of responses, such as video and audio.

By comparison, GPT-4 is also able to analyze photos, but currently only generates text responses, according to its developer, OpenAI.

But the competition in this space “has just begun, and AI tech leaders like Alibaba … Huawei, JD Cloud, SenseTime, and Tencent all have chance to take the lead,” he noted.

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But Baidu has previously touted how ERNIE can outperform ChatGPT in some instances, saying its bot had scored higher marks than OpenAI’s on some academic exams.

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By doing so, “Baidu is also the first Chinese tech leader that has made substantial progress in modernizing the majority of its products” with an AI model, said Dai.

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