Chip War And Censorship Hobble Chinese Tech Giants In Chatbot Race

Baidu’s unveiling of its chatbot, Ernie Bot, exposed gaps in China’s race to rival ChatGPT due to censorship and US chip import restrictions. The preview of Ernie Bot was limited to a pre-recorded demonstration with simple questions to avoid politically and factually incorrect answers. Baidu’s shares dropped 10% during the unveiling, but rallied the following day on positive reviews from brokerages.