Benzinga - Chinese search giant Baidu, Inc. (NASDAQ: BIDU) on Thursday announced its version of an AI chatbot named ERNIE Bot.
The large language model and generative AI product unveiled by the Chinese company hasn’t cut ice with investors, as seen by the sharp decline in its shares in premarket trading on Thursday.
What Happened: CNBC host Jim Cramer took to Twitter to comment on the chatbot. “Oh, and some morning arithmetic: Baidu minus Nividia equals.. Nikola,” he tweeted.
The stock picker apparently took exception to Baidu using its in-house chip Kunlun and not going with Nvidia Corp.‘s (NASDAQ: NVDA) graphic chips. OpenAI’s ChatGPT, which is now the toast of the town, is powered by Nvidia’s chips and it reportedly uses about 10,000 chips from the U.S. chipmaker.
Cramer equated Baidu’s chatbot without Nvidia’s chips to beleaguered electric truck maker Nikola Corp. (NASDAQ: NKLA). The scandal-hit company reported in February that it delivered just 20 trucks to dealers in the fourth quarter and its revenue trailed expectations.
The heavy-duty truck maker also hinted at no resolution to issues that are impacting demand for its battery-powered trucks in the near term.
Why It’s Important: Nvidia is considered one of the biggest beneficiaries of the AI revolution that is taking hold. This optimism is reflected by the strong run-up in the chipmaker’s stock in the year-to-date period.
More importantly, Cramer is an Nvidia bull and has in the past touted the company as the ‘real AI winner.”
In premarket trading, Baidu shares fell 5.78% to $125.32 and Nvidia gained 0.19% to $242.73, according to Benzinga Pro data.
Next: As ChatGPT Frenzy Grows, Here's How Much $1000 Invested In Nvidia During October Lows Would Be Worth Now
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