BlackBerry Ltd (NYSE: BB) stock price exploded to seven-year high after the Canadian tech giant announced a strategic partnership with Chinese internet giant Baidu Inc. (NASDAQ: BIDU). The deal paves the way for the two companies to strengthen their push for auto industry opportunities.
The BlackBerry Baidu partnership autonomous car paves the way for Blackberry to integrate Baidu maps into its real-time QNX OS. The integrated system is to be incorporated in the upcoming GAC New Energy Aion model. GAC is one of Canada’s top three automakers, producing more than 2 million vehicles annually.
The BlackBerry partnership with Baidu seeks to provide auto manufacturers such as GAC with a clear and fast path to producing autonomous cars. The QNX operating system has already proved to be one of the most effective auto industry operating systems thanks to its functional safety network security and reliability.
Auto Industry Opportunity
The QNX technology has already found its way into a number of cars as an advanced driver assistance system. It is currently being used in infotainment systems in more than 175 million cars. Likewise, BlackBerry is looking to leverage Baidu deep artificial intelligence and deep learning technologies to help auto manufacturers produce safe autonomous cars.
The latest deal builds on a 2018 agreement that paved the way for BlackBerry’s QNX operating system to become the basis of Baidu’s Apollo open command Platform. The latest BlackBerry Baidu partnership autonomous car opens the door for the Canadian company to capture market share in the burgeoning Chinese autonomous car segment.
BB Stock Rally
Best known for the BlackBerry Phone, the Canadian tech company has switched its focus to software solutions in recent years. In addition to offering cybersecurity solutions, the company has also set sights on the auto industry with its QNX a technology. The company has already inked a deal that will see the QNX system become an integral part of the Xpeng electric vehicles in China.
Thus, it does not surprise that BlackBerry stock price has exploded on a huge turnover of traded shares. The stock is up by more than 200% as investors react to the huge opportunity in the auto industry. Baidu stock price has also been on a fine run, up by more than 100% over the past year.