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Samsung will use Baidu's Ernie Bot in the new Galaxy S24 series of smartphones in China. At least in those functions that use artificial intelligence from Google, and not proprietary Galaxy AI.
The South Korean manufacturer is positioning its latest line of phones in China as the first of a wave of AI-powered smartphones, and Baidu's AI tools will help with summarizing, organizing and translating text, Bloomberg reports. The company will also provide internal support for Samsung's Circle to Search feature, which is handled by Google in other markets.
Google's Android software powers most smartphones in China, but the company's additional mobile services and app store are unavailable, forcing local companies to fill the gaps with alternatives such as Tencent's WeChat. For Baidu, the deal with Samsung marks a move into Ernie AI, one of the first successful attempts to create a Chinese competitor to OpenAI's ChatGPT.
Samsung's share of the world's largest smartphone market has fallen to 1-2% in recent years, displaced by Apple and local brands such as Xiaomi and Huawei. Displaying Ernie in a prominent location could appeal to millions of potential users.
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Samsung's decision to use the Ernie AI model for its upcoming AI-powered Galaxy 24 smartphone model in China is a confirmation of Baidu's position as China's leading AI player. While this is positive for sentiment, we don't expect a significant financial benefit for Baidu given the collapse of Samsung's once dominant handset market share in China. We remain cautious on Baidu's prospects in the AI industry and expect Tencent, Alibaba and Huawei to emerge as long-term winners in the Chinese AI sector.
— Robert Lea, analyst.
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