In a quest to speed up Baidu’s car related AI development, an open tech ecosystem was formed in April in this year. What this does is that, it enables Baidu to sell intermediary products before it schedules the selling of driverless cars by 2021. In a recent study, it has been ascertained that Baidu would generate a minimum annual sale of $110 billion from car-sharing; $3 billion from driverless car sales; $1.5 billion from bicycles.
With existing low Price/Revenue ratio, Baidu’s new car-related AI business will be valued at nearly $650 billion in 2021. With Alibaba’s higher ratio, Baidu’s valuation will exceed $1 trillion. Baidu has also signed agreements with major Chinese car makers to jointly develop car internet, highly automated driving and driverless cars.