Samsung to showcase Baidu's Ernie AI bot on Galaxy S24 smartphones in China

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Samsung Electronics Co. Baidu Inc's Ernie Bot will be a key attraction in its new Galaxy S24 smartphone series in China.

The South Korean manufacturer pitched its latest handset family as the first in a wave of AI smartphones, and Baidu said in a statement that Baidu's artificial intelligence tools help with text summarization, organization and translation. It also provides backend support for Samsung's “Circle to Search” feature, which Alphabet Inc. has in other markets. is operated by Google.

Google's Android software provides the backbone for the majority of smartphones in China, but the company's add-on mobile services and app store are unavailable, leaving local companies to fill the gaps with alternatives such as Tencent Holdings Ltd's WeChat. For Baidu, the Samsung deal marks a major adopter of its Ernie AI, one of the earliest and best efforts to create a Chinese challenger to OpenAI's ChatGPT.

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Samsung's market share has fallen to around 1-2% in the world's largest smartphone sector in recent years, Apple Inc. of iPhones as well as Xiaomi Corp. crowded by local brands from Huawei Technologies Co. It might be tempting to feature Ernie prominently. As the Korean company maintains its global presence and tries to pioneer a new mainstream category with foldables, it has millions of users.

Here's what Bloomberg Intelligence says

Samsung's decision to use Ernie's large-language AI model for its upcoming AI-powered Galaxy 24 smartphone model in China is a nod to Baidu's position as the leading Chinese AI player at the moment. While positive for sentiment, we do not expect a material financial benefit for Baidu due to the collapse of Samsung's once-leading market share in Chinese handsets. We remain cautious on Baidu's AI prospects and expect Tencent, Alibaba and Huawei to emerge as long-term winners in China's AI segment.



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