Baidu partners with BAIC Group, a state-owned manufacturing firm to design and build 1,000 driverless cars in three years, according to a report by CNBC News on Thursday.
Baidu has tested robotaxis in major cities in China and the partnership will expand the opportunity to commercialize driverless taxis.
The innovative initiative pits Baidu against Didi, a ride-hailing company developing a robotaxis and pushing for an IPO in the United States.
Baidu also faces intense competition from Chinese start-ups, including Pony.ai and WeRide who are already testing their autonomous cars.
Baidu has been working to build partnerships with traditional automakers to build up their manufacturing capacities.
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