Baidu Inc (ADR) (NASDAQ:BIDU) has announced that it is going to acquire xPerception for an undisclosed amount.
The acquisition is in line with Baidu’s projection
The Chinese based company agreed to acquire the U.S. computer vision company in order to support their renewed goals in artificial intelligence. This is even as Chinese tech companies undergo regulatory headwinds in the U.S.
xPerception specializes in vision perception software as well as hardware with applications in virtual reality and robotics. The company is expected to continue developing their main technology in Baidu’s research unit.
Baidu stated, “The acquisition of xPerception is the latest in a recent series of notable investments aimed at strengthening Baidu’s position as a global leader in AI.”
Baidu is aiming at the foreign technology and personnel as part of a wider motive to refocus the company resources on developing capabilities on artificial intelligence. When the Chinese government tightened the online ads regulations, revenues from the company’s main search unit received a beating, culling a great potion of the current advertisers with new eligibility needs.
Chinese tech firms facing a hard time in the U.S. market
The announcement was made as the other Chinese tech firms are facing challenges with the regulatory push back as far as acquisitions are concerned in the U.S. market. Ant Finance an affiliate of Alibaba Group Holding Ltd (NYSE:BABA) has denied allegations by Euronet Worldwide Inc (NASDAQ:EEFT) that claim its bid for MoneyGram International Inc. (NASDAQ:MGI), a U.S. remittance firm, poses national security risks.
On Tuesday, LeEco, a Chinese Internet firm, reported that it is going to scrap a $2 billion bid on Vizio a U.S. electronic firm.
How Baidu gains from the acquisition?
Baidu states that acquisition of xPerception will help the company in developing visual perception technology for their autonomous riving unit as well as their augmented reality projects. xPerception was founded by two former engineers from a U.S. augmented reality startup, Magic Leap which considers Alibaba as an investor.
The two engineers include Mingyu Chen and Yingze Bao and both joined Magic Leap in the year 2014. They augmented reality unicorn is reported to have raised about $1.4 billion.
The stock of Baidu closed in at $172.61 on Thursday after a fall $1.00 or 0.58%.
