NVIDIA Corporation (NASDAQ:NVDA) and Baidu Inc (ADR) (NASDAQ:BIDU) announced a broad partnership to bring the world’s leading artificial intelligence technology to cloud computing, self-driving vehicles and AI home assistants.

Speaking in the keynote at Baidu’s AI developer conference in Beijing, Baidu president and COO Qi Lu described his company’s plans to work with NVIDIA to:

  • Bring next-generation NVIDIA® Volta™ GPUs to Baidu Cloud, providing cloud customers with the world’s leading deep learning platform.
  • Adopt NVIDIA’s DRIVE™ PX platform for Baidu’s self-driving car initiative, and develop self-driving cars with major Chinese carmakers.
  • Optimize Baidu’s PaddlePaddle open source deep learning framework for NVIDIA Volta GPUs and make it widely available to academics and researchers.
  • Bring AI capabilities to Chinese consumers by adding Baidu’s DuerOS conversational AI system to NVIDIA SHIELD™ TV.

“NVIDIA and Baidu have pioneered significant advances in deep learning and AI,” said Ian Buck, NVIDIA vice president and general manager of accelerated computing. “We believe AI is the most powerful technology force of our time, with the potential to revolutionize every industry. Our collaboration aligns our exceptional technical resources to create AI computing platforms for all developers — from academic research, startups creating breakthrough AI applications, and autonomous vehicles.”

“Today, we are very excited to announce a comprehensive and deep partnership with NVIDIA,” said Baidu’s Lu at the company’s event. “Baidu and NVIDIA will work together on our Apollo self-driving car platform, using NVIDIA’s automotive technology. We’ll also work closely to make PaddlePaddle the best deep learning framework; advance our conversational AI system, DuerOS; and accelerate research at the Institute of Deep Learning.”

AI in Cloud & Data Centers

Baidu, one of China’s leading cloud providers, announced that it will deploy NVIDIA HGX™ architecture with Tesla® Volta V100 and Tesla P4 GPU accelerators for AI training and inference in its data centers. Combined with Baidu’s PaddlePaddle deep learning framework and NVIDIA’s TensorRT™ deep learning inference software, researchers and companies can harness state-of-the-art technology to develop products and services with real-time understanding of images, speech, text and video.

To accelerate AI development, the companies will work together to optimize Baidu’s open-source PaddlePaddle deep learning framework on NVIDIA’s Volta GPU architecture.

PaddlePaddle, open sourced in 2013, is used today to develop Baidu’s many lines of business, including Baidu’s search rankings, image classification services, real-time speech understanding, visual character recognition, and other AI-powered services by third-party developers. With Volta’s 120 teraflops of deep learning performance and support for PaddlePaddle, researchers and companies will have the best platform for developing next generation AI applications.

Shares of Nvidia are up nearly 4% to $187 in early trading Wednesday. NVDA has a 1-year high of $168.50 and a 1-year low of $46.03. The stock’s 50-day moving average is $146.58 and its 200-day moving average is $116.42.

On the ratings front, NVDA has been the subject of a number of recent research reports. In a report issued on June 30, RBC analyst Mitch Steves maintained a Buy rating on NVDA. On June 28, Stifel Nicolaus’ Kevin Cassidy reiterated a Hold rating on the stock and has a price target of $93.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Mitch Steves and Kevin Cassidy have a yearly average return of 25.7% and 21.2% respectively. Steves has a success rate of 80% and is ranked #138 out of 4592 analysts, while Cassidy has a success rate of 62% and is ranked #97.

Sentiment on the street is mostly bullish on NVDA stock. Out of 25 analysts who cover the stock, 14 suggest a Buy rating , 9 suggest a Hold and 2 recommend to Sell the stock. The 12-month average price target assigned to the stock is $139.2, which represents a slight downside potential from current levels.

NVIDIA Corp. designs and manufactures computer graphics processors, chipsets, and related multimedia software. The company operates through two segments: Graphics Processing Unit and Tegra Processor. The Graphics Processing Unit segment includes sales of the company’s GeForce discrete and chipset products that supports desktop and notebook PCs plus license fees from Intel and sales of memory products. The Tegra Processors segment provides processors that deliver superior visual and multimedia experience on tablets, smart phones and gaming devices while consuming minimal power.