Baidu calls US restrictions on AI-chip shipments ‘insignificant’

Chinese tech giant Baidu said that U.S. restrictions on the export of certain chips will not have a noticeable impact on its AI or autonomous-vehicles businesses. The Register reports.

During the presentation of the third-quarter 2022 results, Baidu’s executive vice president and head of the AI Cloud group, Dou Shen, said that Baidu’s AI business was not ‘too dependent’ on high-tech chips.

According to him, the company has the necessary stock to maintain normal operations. It can also source substitutes for sanctioned chips.

“We have technologies that enable us to use these alternatives to achieve much of the same efficiency and effectiveness in both the cloud and the broader AI business,” Chen said.

He noted that automotive chips are not on the sanctions list. Shen also recalled the development of Baidu’s own Kunlun processor. According to him, the semiconductor is already used to service some clients.

“We expect that in the future China will manufacture more auto parts, including core chips,” the vice president said.

Shen believes that the development of the domestic semiconductor market will reduce dependence on chip imports for the automotive industry.

In the third quarter, AI Cloud division revenue rose 24% year on year to $630 million.

Total revenue rose 2% year on year to $4.5 billion.

In October, the administration of U.S. President Joe Biden imposed restrictions on the supply of AI chips in China.

In the same month, experts suggested that the sanctions could hamper the development of autonomous vehicles in China.

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