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Baidu and Xiaomi Come Together for AI and IoT Development

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Baidu, Inc. (BIDU - Free Report) has announced that it has entered into a partnership with Xiaomi Inc. to develop technologies on artificial intelligence (AI) and Internet of Things (IoT).

The partnership aims at using the Chinese internet giant’s conversational AI system DuerOS for the further expansion of the IoT industry. This will give the users a better experience in consumer electronics and smart devices. The deal will also expand China’s smart manufacturing capabilities using AI, IoT and big data.

Launched in July, Baidu’s DuerOS open platform is a conversation-based AI system to support the development of the IoT industry. The open platform aims at helping developers in creating voice-enabled devices that can hear, understand and follow commands given by the user.

Coming to the numbers, DuerOS has added more than 130 partners since its launch. It is already embedded in many products including smartphones, TVs, speakers, smart watches and home appliances.

Notably, shares of Baidu have gained 48.4% year to date, outperforming the industry’s 27.3% rally.

More on the Headlines

As a leader in AI technology, Baidu plans to use its DuerOS conversation-based AI system to support the development of the IoT industry. On the other hand, Xiaomi, China’s leading smartphone manufacturer, and a leader in the IoT space, will apply these AI technologies in more real-life scenarios, in a bid to better understand real scenarios, users and their needs.

Although not much details about the union is available, both the companies revealed that they will work on various aspects to further explore the IoT industry. These include voice, computer vision, natural language processing, knowledge graph, deep learning, augmented reality and virtual reality. This will allow both, Baidu and Xiaomi, provide their users with a better understanding of the real scenario.

The recent deal is a win-win situation for both the companies. The partnership will help the companies in developing new products and strengthening their capabilities in growing areas like AI and IoT.

Bottom Line

AI techniques have gained immense traction over the last couple of years due to massive demand for analyzing unstructured data like tweets, social media posts, photos and videos across different industries.

Also, the IoT industry has enormous potential, and therefore Baidu aims at using these AI techniques for further development of the IoT industry.

This partnership underscores Baidu’s growing interest in this highly promising space. It appears that the company is flexing its muscles in this space to leverage the concept of consumer convenience and fun in a bid to impress both customers and investors.

Zacks Rank & Other Stocks to Consider

Currently, Baidu has a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader technology sector are NVIDIA Corporation (NVDA - Free Report) , SMART Global Holdings, Inc. (SGH - Free Report) and Lam Research Corporation (LRCX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings per share growth rate for NVIDIA Corporation, SMART Global and Applied Materials is projected to be 11.2%, 15.0% and 14.9%, respectively.

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