Chinese internet and tech giants Baidu Inc (NASDAQ: BIDU) And Xiaomi have struck a partnership through which they will work together on artificial intelligence and the Internet of Things.
The aim of the partnership between the two companies is to come up with AI and IoT solutions that will provide better experiences for users of smart devices as well as consumer electronics. The partnership is strategic considering that Baidu is one of China’s internet giants and Xiaomi has rapidly become a smartphone powerhouse that has earned itself global recognition through its innovative products.
“Baidu has strong technological fundamentals in AI, and with Baidu’s conversational AI system DuerOS, we are using our world-leading AI technologies and information ecosystems to support the development of the IoT industry,” stated Qi Lu, the President and COO of Baidu.
Lu also pointed out that acknowledged that Xiaomi boasts of admirable experience in big data, smart hardware and it already has a well-established ecosystem of smart devices. The strategic partnership between the two firms will put them in a better position to leverage growth over the next few months. An analysis carried out by the McKinsey Global Institute reveals that IoT might have a huge economic impact by the year 2025. The research firm claims that the IoT industry may be worth anywhere between $3.9 and $11.1 trillion and this includes consumer surplus.
Accenture has also speculated that industrial IoT might contribute as much as $14.2 trillion to the world’s economy by 2030. It is thus vital for companies to secure a strong footing in IoT as well as AI as early as possible. This kind of preparation through a strategic partnership will allow Baidu and Xiaomi to benefit significantly over the next few years. The partnership will also allow the two Chinese firms to compete more effectively with rivals in the industry. The joint partnership will not only allow them to prepare for the next level of IoT but it will also allow them to combine their resources to come up with more innovative and competitive products.
Baidu stock closed the latest trading session on Thursday at $238.58.