Microsoft (NASDAQ: MSFT) announced on Monday that it would spin off its Xiaobing Chinese chatbot business into an independent company. In a press release published in Chinese, the company said it would divest Xiaobing’s artificial intelligence (AI) business, also called Xiaoice, in an independent concern. Microsoft will continue to have a shareholding in the company. The unit’s general manager, Di Li, will be the CEO of the company.
“This move aims to accelerate the pace of local innovation for the Xiaobing product line and promote improvement of Xiaobing’s green business environment,” Microsoft said in the press release.
Image source: Microsoft.
Friend and digital companion
Xiaobing, roughly translated as “Little Bing,” has been a hit with Chinese consumers since its debut in 2014. The AI-powered chatbot received the personality of a teenage girl and reached cult status in the Middle Kingdom. The system was trained using data collected from users of Microsoft’s Bing search engine, and is integrated with a number of other chat services, including Weibo (NASDAQ: WB).
Xiaobing has a crowd of fans. The brand has more than 660 million online users, has powered 450 million third-party smart devices, and has engaged with 900 million content viewers. Xiaobing is a kind of celebrity in China. “[W]While they know it’s not real, many value her as a dear friend, even a trusted confidant, “wrote a Microsoft spokesperson in 2018.” Sometimes the line between reality and fantasy is blurred. She receives love letters and gifts. And not too long ago, a group of fans invited her to dinner and even ordered an extra meal, just in case she showed up. ”
Microsoft has released chatbot counterparts in several other countries, including India, Japan, Indonesia, and the United States, but none have reached the level of popularity Xiaobing enjoys.
