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Baidu Partners with Lenovo in 3rd China AI Smartphone Deal

The Baidu logo is seen outside the company headquarters in Beijing on February 2, 2024. (Photo by Jade GAO / AFP)
The Baidu logo is seen outside the company headquarters in Beijing on February 2, 2024. (Photo by Jade GAO / AFP)
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Baidu Partners with Lenovo in 3rd China AI Smartphone Deal

The Baidu logo is seen outside the company headquarters in Beijing on February 2, 2024. (Photo by Jade GAO / AFP)
The Baidu logo is seen outside the company headquarters in Beijing on February 2, 2024. (Photo by Jade GAO / AFP)

China's Baidu has partnered with Lenovo to feature its generative artificial intelligence (AI) technology on Lenovo's smartphones, in the latest team up with a phone manufacturer as it seeks practical applications for its AI model.
A spokesperson for Beijing-based Baidu told Reuters this week that the partnership involves Lenovo using its Ernie large language model (LLM) and is similar to collaborations with Samsung and Honor announced last month.
Lenovo sells its own branded phones and also owns the phone brand Motorola. Ernie is already embedded in the browser and app store apps of Lenovo's personal computers and tablets.
Lenovo did not respond to a request for comment.
Selling smartphones that offer generative AI features for services such as chatbots and real-time translation have become a new global trend after the technology became popularized in late 2022 with the launch of ChatGPT.
Google is seen to be a leader in AI smartphones with its Pixel phones and robust cloud-based AI while Apple has been reported to be working to bring generative AI models to the iPhone.
Research firm Canalys expects that 5% of smartphones shipped globally in 2024, or 60 million devices, will be AI-capable smartphones.
But AI services powered by US firms like ChatGPT maker OpenAI and Google are unavailable in China, leaving the market to Chinese firms. The Chinese market has now over 200 AI models on offer, including from Baidu's chief rivals Alibaba and Tencent.
Baidu CEO Robin Li said last November that firms now needed to focus on developing practical applications. China's top phone brands including Vivo, Xiaomi and Huawei are also working on their own on-device AI models but have not disclosed details.
Such smartphone collaborations could not only help Baidu in this arena, but having its AI features deeply bundled with smartphones could also give the company exposure to a vast amount of data which could help Baidu's LLM catch up to rival AI companies in the US.
"Adapting LLM on smartphones is the right moment to promote AI-powered features, although they may be limited now. In the long run, they may become a 'must-have'," said Ivan Lam, an analyst at research firm Counterpoint.

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Technology

Musk’s Social Media Firm X Bought by His AI Company, Valued at $33 Billion

xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
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Musk’s Social Media Firm X Bought by His AI Company, Valued at $33 Billion

xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)
xAI and X logos are seen in this illustration taken, March 28, 2025. (Reuters)

Elon Musk's xAI has acquired X in a deal that values the social media platform at $33 billion and allows the value of his artificial intelligence firm to be shared with his co-investors in the company formerly known as Twitter.

The deal could also help xAI's ability to train its chatbot known as Grok.

"xAI and X's futures are intertwined," Musk, who also heads automaker Tesla and SpaceX, wrote in a post on X: "Today, we officially take the step to combine the data, models, compute, distribution and talent."

He said the combination values "xAI at $80 billion and X at $33 billion ($45B less $12B debt)".

Representatives for X and xAI did not immediately respond to requests for comment. Much of the deal's specifics remain unclear, such as how X's leaders would be integrated in the new firm or whether there would be regulatory scrutiny.

Musk, the world's wealthiest man, is also a close ally of US President Donald Trump and heads the Department of Government Efficiency.

D.A. Davidson analyst Gil Luria said the price tag for X of $45 billion when debt was included was not a coincidence. "It is $1 billion higher than the take-private transaction for Twitter in 2022."

An investor in xAI who declined to be identified said they were not surprised by the deal, viewing it as Musk consolidating his leadership and management at his own companies.

Musk did not ask investors for approval but told them that the two companies had been collaborating closely and the deal would drive deeper integration with Grok, the investor said.

OPENAI RIVALRY

Musk's xAI startup was launched less than two years ago and recently raised $10 billion in a funding round that valued the company at $75 billion, according to a media report.

It competes with the likes of Microsoft-backed OpenAI as well as with Chinese startup DeepSeek.

In February, Musk, 53, made a $97.4 billion bid with a consortium for OpenAI, which was rejected and he has sued to prevent the ChatGPT maker from converting from a non-profit to a for-profit business. A judge this month denied Musk's request for a preliminary injunction that would prevent the changeover.

As competition in AI intensifies, xAI has been ramping up its data center capacity to train more advanced models, and its supercomputer cluster in Memphis, Tennessee, called "Colossus," is touted as the largest in the world.

xAI introduced Grok-3, the latest iteration of its chatbot, in February.

The X platform could serve to further distribute xAI products, while also providing a real-time feed of users' musings, screenshots and other data.

After buying Twitter, Musk gutted the company's workforce, prompting advertisers to flee the platform and a rapid decline in revenue. Recently, brands have been returning to X as Musk's influence in the Trump administration grows.

The seven banks that extended $13 billion in loans to Musk to buy X kept the debt on their books for two years until they were able to sell it all at once last month, according to a source familiar with the transactions.

This was made possible after a surge in investor interest for exposure to AI companies along with X's improved operating performance over the previous two quarters, among other factors, according to two people familiar with the matter.

After the merger, investors who bought the debt from the banks will profit, said Espen Robak, founder of Pluris Valuation Advisors, which specializes in illiquid assets. "For sure the debt is worth more now, if not fully paid off."

Separately, a US judge on Friday rejected a bid by Musk to dismiss a lawsuit claiming he had defrauded former Twitter shareholders by waiting too long to disclose his initial investment in the company.