Baidu (NASDAQ:) inventory fell 7% on Monday after the SCMP reported that scientists from the PLA’s Strategic Assist Power reportedly examined Baidu’s Ernie and iFlyTek’s Spark, giant language fashions (LLMs), in army simulations.

The analysis paper, revealed by these scientists in December, detailed the utilization of LLMs in army contexts.

The inventory is down an extra 4.5% in pre-market Tuesday.

Baidu, nonetheless, denies any affiliation or collaboration, asserting no tailor-made companies had been offered to the researchers. The corporate emphasised its lack of understanding in regards to the analysis undertaking, stating that if its LLM was used, it will have been the publicly obtainable model.

The reported army utility of those language fashions raises issues in regards to the dual-use nature of superior AI applied sciences.

Analysts at Citi stated the market “possible overreacted” to the SCMP article.

“We predict the market perceived a possible threat that Baidu may face an overhang from any affiliation/cooperation with Chinese language army entities,” analysts stated in a observe.

“Amid fragile market sentiment, we consider the market possible overreacted to the information article.”