Baidu, the Chinese-based tech company, recently denied that the company has plans to spin-off their autonomous vehicle efforts, which resulted in the company's stock to rise by $120.49, or 3%.
China's top internet search engine said in a statement recently that rumors about the spin-off of its open autonomous vehicle development business Apollo circulated in various media were untrue after a report by Caijing, a Chinese business news website, was picked up by U.S. media like Technode.
The company has previously considered to spin off its Apollo project upon its maturity to attract funding partners, according to a 2017 Bloomberg interview with Robin Li, Baidu's chief executive officer.
However, now Baidu says its Apollo project plays a key role in its AI development, and it is currently evolving steadily in accordance with its strategy.
"We are pleased to see that Apollo autopilot technologies have been adopted in many innovative scenarios, including street cleaning, goods delivery and shuttle services," Li said in the conference call last Friday.
The Beijing Transportation Commission recognized Apollo as a leader in autonomous driving in a March 2018 Beijing Autonomous Driving Vehicles Road Test Report. Baidu said the report was different from self-reported miles used by other autonomous driving reports in field of safety and quality control of autonomous driving.
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