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Hans India
30-06-2025
- Business
- Hans India
Baidu to Open Source ERNIE AI Model, Shaking Up Global AI Arena
In a bold and unexpected move, Chinese tech giant Baidu has announced the open-sourcing of its flagship ERNIE generative AI model, marking a pivotal moment in the rapidly evolving global AI competition. The company confirmed that the rollout would begin gradually starting Monday. While not as abrupt or headline-grabbing as the recent debut of DeepSeek, Baidu's decision is already making waves in the AI community and prompting responses from key industry stakeholders worldwide. The development comes as a surprise, given Baidu's long-held stance favouring proprietary development. The company has traditionally maintained strict control over its AI tools and infrastructure, resisting the open-source wave that has swept through parts of the tech world. 'Baidu has always been very supportive of its proprietary business model and was vocal against open-source, but disruptors like DeepSeek have proven that open-source models can be as competitive and reliable as proprietary ones,' said Lian Jye Su, Chief Analyst at technology research firm Omdia, speaking to CNBC earlier. Although the move might not have the dramatic impact DeepSeek generated, experts are calling it an important step in AI's broader evolution. 'This isn't just a China story. Every time a major lab open-sources a powerful model, it raises the bar for the entire industry,' said Sean Ren, Associate Professor of Computer Science at the University of Southern California and Samsung's AI Researcher of the Year. Ren pointed out that open-source models challenge industry norms, especially for closed-source providers like OpenAI and Anthropic. 'While most consumers don't care whether a model's code is open-sourced, they do care about lower costs, better performance, and support for their language or region. Those benefits often come from open models, which give developers and researchers more freedom to iterate, customize, and deploy faster,' he explained. From a pricing standpoint, industry analysts see Baidu's move as a potential game-changer. Alec Strasmore, founder of AI advisory Epic Loot, compared the shift to a price war. 'Baidu just threw a Molotov into the AI world,' he declared. 'OpenAI, Anthropic, DeepSeek — all these guys who thought they were selling top-notch champagne are about to realise that Baidu will be giving away something just as powerful.' He continued, 'This isn't a competition; it's a declaration of war on pricing.' According to Strasmore, startups and smaller developers may soon rethink paying premium prices for AI access. This new strategy isn't entirely unanticipated. Earlier in March, Baidu claimed that its latest model, ERNIE X1, could match DeepSeek's R1 in performance while costing half as much. CEO Robin Li also hinted at the company's global ambitions during an April developer event. 'Our releases aim to empower developers to build the best applications — without having to worry about model capability, costs, or development tools,' Li said at the time. However, not all experts believe Baidu's open-source shift will immediately shake the Western market. Cliff Jurkiewicz, VP of Global Strategy at applied AI firm Phenom, suggested the news might not even register in the U.S. tech scene. 'The news of Baidu going open source probably lands with a big thud,' he commented. 'Most people in the United States don't even know it's a Chinese tech company.' Drawing parallels with the early Android ecosystem, Jurkiewicz explained that while open systems provide flexibility, they can also be challenging to manage. 'When Android first emerged, its standout feature was that it was configurable and customisable. But it was almost too much work… Android, out of the box, is plain and vanilla, so it has to be customised, and that's a real challenge,' he noted. As Baidu begins its rollout, all eyes are now on how this strategic pivot will reshape the global AI landscape — from affordability and accessibility to the core philosophies of AI development.
India Today
30-06-2025
- Business
- India Today
After DeepSeek, China's Baidu to open source its Ernie AI chatbot
Baidu is set to open source its Ernie generative AI model, which will be a major development in the ongoing global AI competition. The company has confirmed that the open-sourcing of its large language model will begin with a gradual rollout starting Monday. While it may not be as disruptive as the emergence of DeepSeek, Baidu's move is already sparking debate within the AI community and is being closely watched by industry leaders across the decision comes as a surprise to many, especially given its long-standing preference for a proprietary approach to AI development. The company had previously opposed the open-source model, favouring internal control over its tools and infrastructure.'Baidu has always been very supportive of its proprietary business model and was vocal against open-source, but disruptors like DeepSeek have proven that open-source models can be as competitive and reliable as proprietary ones,' Lian Jye Su, chief analyst with technology research and advisory group Omdia, previously told CNBC. While some experts believe Baidu's move may not have the same dramatic effect as DeepSeek's launch, others argue that it is an important milestone in the broader evolution of artificial intelligence.'This isn't just a China story. Every time a major lab open-sources a powerful model, it raises the bar for the entire industry,' said Sean Ren, associate professor of computer science at the University of Southern California and Samsung's AI Researcher of the added that open-source models put pressure on companies like OpenAI and Anthropic to justify their closed platforms, premium APIs, and subscription-based pricing models. 'While most consumers don't care whether a model's code is open-sourced, they do care about lower costs, better performance, and support for their language or region. Those benefits often come from open models, which give developers and researchers more freedom to iterate, customize, and deploy faster,' he insiders are also pointing to the broader impact Baidu's move could have on pricing. Alec Strasmore, founder of AI advisory Epic Loot, likened the development to a direct challenge to the commercial dominance of current AI leaders.'Baidu just threw a Molotov into the AI world,' Strasmore said. 'OpenAI, Anthropic, DeepSeek, all these guys who thought they were selling top-notch champagne are about to realise that Baidu will be giving away something just as powerful,' he added, comparing Baidu's move to budget retail giant Costco creating its own high-quality alternative.'This isn't a competition; it's a declaration of war on pricing,' he said, adding that the open-source release of Ernie could encourage startups and developers to stop paying top dollar for AI ambitions are clear. In March, the company claimed its latest ERNIE X1 model could match the performance of DeepSeek's R1 at half the price. CEO Robin Li also hinted earlier this year that Baidu's open-source strategy aims to support developers across the releases aim to empower developers to build the best applications — without having to worry about model capability, costs, or development tools,' Li said during a developer event in not everyone is convinced the news will immediately disrupt the global AI landscape. Cliff Jurkiewicz, vice president of global strategy at applied AI firm Phenom, said Baidu's announcement may not generate much reaction in markets like the US.'The news of Baidu going open source probably lands with a big thud,' Jurkiewicz said. 'Most people in the United States don't even know it's a Chinese tech company.'He also drew comparisons between Baidu's move and the early days of Android. 'When Android first emerged, its standout feature was that it was configurable and customisable. But it was almost too much work in the sense that people just wanted the thing to function correctly,' he said. 'Android, out of the box, is plain and vanilla, so it has to be customised, and that's a real challenge,' Jurkiewicz added.- Ends
CNBC
29-06-2025
- Business
- CNBC
China's biggest public AI drop since DeepSeek, Baidu's Ernie, is about to hit the market
On Monday, Chinese technology giant Baidu plans to make its Ernie generative AI large language model open source, a move by China's tech sector that could be its biggest in the AI race since the emergence of DeepSeek. A Baidu spokesman confirmed the plan and said the open sourcing will be a gradual roll-out. Will it be a shock to the market on the order of DeepSeek? That's a question which divides AI experts. One big change is that Baidu wasn't always on the open source bandwagon. "Baidu has always been very supportive of its proprietary business model and was vocal against open-source, but disruptors like DeepSeek have proven that open-source models can be as competitive and reliable as proprietary ones," Lian Jye Su, chief analyst with technology research and advisory group Omdia, previously told CNBC. Now that Baidu has made the decision to open source, even if it isn't a DeepSeek moment, it is an important one for the global AI race. "This isn't just a China story. Every time a major lab open-sources a powerful model, it raises the bar for the entire industry," said Sean Ren, associate professor of computer science at the University of Southern California and Samsung's AI Researcher of the Year. Ren says Baidu's move puts pressure on closed providers like OpenAI and Anthropic to justify gated APIs and premium pricing. "While most consumers don't care whether a model's code is open-sourced, they do care about lower costs, better performance, and support for their language or region. Those benefits often come from open models, which give developers and researchers more freedom to iterate, customize, and deploy faster," Ren said. Other industry experts view an open source Ernie as potentially being even more disruptive to both U.S. and Chinese competitors when it comes to the price equation. "Baidu just threw a Molotov into the AI world," said Alec Strasmore, founder of AI advisory Epic Loot. "OpenAI, Anthropic, DeepSeek, all these guys who thought they were selling top-notch champagne are about to realize that Baidu will be giving away something just as powerful," Strasmore said, comparing Baidu's move to Costco creating Kirkland. He said the message to all of the world's startups is "stop paying top dollar." "This isn't a competition; it's a declaration of war on pricing," Strasmore said. Baidu said in March that its recent ERNIE X1 model delivers performance on par with DeepSeek's R1 "at only half the price." Baidu's CEO, Robin Li, hinted earlier this year that the roll-out would help developers worldwide in AI development. "Our releases aim to empower developers to build the best applications — without having to worry about model capability, costs, or development tools," Li said in a speech to developers in China in April. In the least, it's one more moment in time when investors have to analyze how cost dynamics in AI model access are changing quickly, and what it means that more applications can be built on top of "these dirt cheap models," Strasmore said. "Baidu is going to be seeding the world with Chinese AI models," he added. Making these AI tools more widely available is a notable development from Baidu, but "the news of Baidu going open source probably lands with a big thud," said Cliff Jurkiewicz, vice president of global strategy at Phenom, an applied AI company for the human resources sector. "Most people in the United States don't even know it's a Chinese tech company," he said. Jurkiewicz compared the broader move to open architecture in AI as the difference between Android and Apple. "When Android first emerged, its standout feature was that it was configurable and customizable. But it was almost too much work in the sense that people just wanted the thing to function correctly," Jurkiewicz said. "Android, out of the box, is plain and vanilla, so it has to be customized, and that's a real challenge," he added. There is no doubt that the open source movement in AI is a threat to the business models of major players in the space. Sam Altman, CEO of OpenAI, wrote in a January Reddit thread about the issue, and in more recent Senate testimony has said an open source rollout may happen this summer. "While OpenAI has open-sourced models in the past, the company has generally favored a proprietary, closed source development approach," Altman said, acknowledging that may need to change. "[I personally think we need to] figure out a different open source strategy," Altman said. "Not everyone at OpenAI shares this view, and it's also not our current highest priority … We will produce better models [going forward], but we will maintain less of a lead than we did in previous years." In the May Senate appearance, Altman said, "We realize that we open AI can do more to help here. So we're going to release an open source model that we believe will be the leading model this summer because we want people to build on the U.S. stack in terms of closed source models. A lot of the world uses our technology and the technology of our colleagues. We think we're in good shape there." More recently, Altman posted that the release would be delayed, but still scheduled for summer. One advantage U.S. players maintain, according to Jurkiewicz, is that the Baidu release will encounter skepticism at the enterprise level, with many questions about security. "On the other hand, the big players — OpenAI's ChatGPT and Microsoft's Co-Pilot — are integrated with everything," Jurkiewicz said. Ren said while open source often conveys a sense of transparency, that doesn't necessarily translate into market trust. "Just because a model's weights are public doesn't mean we know what data it was trained on, whether consent was given, or if those data contributors were credited or compensated," Ren said. As AI becomes more embedded into our daily lives, that lack of accountability becomes a serious issue. "If we don't address it now, we risk scaling systems that quietly extract value from millions of people without consent, credit, or compensation," Ren said. With DeepSeek, some countries banned the AI and there were widespread concerns about consumers downloading the technology. Strasmore said the Chinese links can get dangerous if more products are tied to the Baidu API. "This would be virtually giving China access to every app on every phone. That's one scary component," he said.
Yahoo
27-05-2025
- Business
- Yahoo
Baidu vs. Alibaba: Which Chinese AI Stock Is the Better Investment Now?
Baidu BIDU and Alibaba BABA are two of China's tech titans that have increasingly pivoted toward artificial intelligence (AI). Both companies dominate their respective fields – Baidu in online search and AI cloud services, Alibaba in e-commerce and cloud computing – yet they share notable similarities. Each is profitable, generates substantial cash, and has been pouring investments into cutting-edge AI research and fact, Chinese tech companies like Alibaba and Baidu have recently captured renewed investor attention thanks to a series of positive developments (including massive government stimulus and the rise of AI services) after a few challenging years. With China's AI sector booming, these two companies stand out as key players riding the dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now. Baidu, often dubbed 'China's Google,' has successfully repositioned itself as an AI-first company, marking a significant shift toward cloud computing and AI services in recent years. The company's aggressive push into AI has yielded promising results, particularly in its first-quarter 2025 performance. Baidu Core's revenue growth was driven largely by its AI Cloud business, which surged 42% year over year. AI Cloud now represents 26% of Baidu Core's revenue, up from 20% in the same period the previous year, highlighting increasing recognition of Baidu's AI capabilities.A key driver behind Baidu's AI growth is its model-as-a-service platform, Qianfan, which offers an extensive model library and supports fine-tuning of multimodal and reasoning models. By reducing inference costs, Qianfan has made Baidu's cloud offerings especially attractive to enterprise clients, bolstering subscription-based revenue. (read more: Baidu's Q1 Earnings & Revenues Top Estimates, Margins Down Y/Y).Baidu further strengthened its AI leadership with the launch of ERNIE 4.5 and ERNIE X1, and their Turbo versions in April 2025. These models promise superior performance at lower costs, enabled by Baidu's unique four-layer AI architecture that optimizes infrastructure, frameworks, models, and applications. As part of its strategy to drive accessibility, Baidu plans to open-source ERNIE 4.5 by June 30, 2025, helping expand its challenges such as U.S. chip export restrictions, Baidu remains confident in its ability to maintain momentum, citing efficient GPU utilization and growing domestic chip capabilities. Additionally, Baidu's mobile search product is increasingly AI-driven, with 35% of mobile search results now featuring AI-generated content, up from 22% in terms of challenges, the company posted a negative free cash flow of RMB 8.9 billion in the first quarter, largely due to elevated AI investments despite a strong operating margin of 16% for Baidu Core and a non-GAAP margin of 19%. Management signaled further increases in capital outlays for AI Cloud, model development, autonomous driving, and AI search transformation in ongoing weakness in online advertising is a concern. Even in the latest quarter, Baidu's core online marketing revenues declined 6% year over year, extending the prior year's decline. Competition from rivals (e.g., ByteDance's TikTok/Douyin in advertising, Tencent in digital ads, etc.) and the shift of ad budgets to new platforms have made it harder for Baidu to grow its search ad business. In cloud computing and AI, Baidu faces competition from Alibaba Cloud and Tencent Holdings Limited's TCEHY cloud services. Alibaba, China's e-commerce behemoth, has staged a notable comeback in the past year. Alibaba's core strength is its diversified, powerhouse business model. The company operates a vast commerce ecosystem that spans Chinese consumer marketplaces (Taobao, Tmall), international retail platforms (AliExpress, Lazada), wholesale trade, logistics (Cainiao), local services, digital media, and more. These commerce-related segments collectively still account for over half of Alibaba's revenue.A major driver of Alibaba's latest fourth-quarter performance was the strong momentum in its Cloud and AI segments. Alibaba Cloud revenue accelerated 18% year over year, with public cloud services growing even faster. This surge was fueled by robust demand for AI infrastructure, particularly as enterprises—both digital-native and traditional—began migrating workloads to the cloud to deploy AI applications. Notably, AI-related product revenue maintained triple-digit growth for the seventh consecutive quarter, demonstrating sustained momentum. The company's open-sourced Qwen3 model series, spanning multiple sizes and use cases, added further weight to its leadership in AI technology. (read more: Alibaba Q4 Earnings Surpass Estimates, Revenues Increase Y/Y)In the domestic e-commerce segment, Alibaba made meaningful progress in monetization. Taobao and Tmall Group posted a 12% rise in customer management revenue, driven by increased take rates. Key contributors included the rollout of a 0.6% software service fee and deeper adoption of Quanzhantui (QZT), a self-service ad platform designed to boost merchant marketing efficiency. Additionally, the growth in 88VIP memberships (which surpassed 50 million) and rising average revenue per user (ARPU) suggested improving customer loyalty and higher monetization potential. The integration of AI into search, recommendations, and advertising further enhanced user experience and operational Alibaba's capital allocation strategy also underscored its underlying financial strength. The company returned $16.5 billion to shareholders via dividends and buybacks while selling non-core assets to sharpen its focus on AI and core commerce. These actions, combined with a strong net cash position, gave Alibaba the flexibility to continue investing in strategic growth areas such as instant commerce and AI company faces key challenges, including intense competition in China's e-commerce space, rising costs from strategic investments in instant commerce and AI infrastructure, and macroeconomic and geopolitical risks. In the cloud segment, despite robust AI-driven demand, Alibaba is grappling with increased infrastructure costs. The company reported a 76% decline in free cash flow, largely due to elevated capital expenditures related to AI and cloud capacity expansion. These factors are contributing to margin pressure despite strong revenue momentum, as seen in the quarter's 1.9 percentage point quarter-over-quarter decline in adjusted EBITDA margin. While profitability is under pressure in the short term, Alibaba remains focused on long-term growth by streamlining operations and investing in high-potential Alibaba must navigate macroeconomic and geopolitical risks, especially in its international commerce business. Global trade regulation uncertainties and regional economic headwinds present structural challenges that could affect cross-border performance and profitability. As you can see below, Baidu's shares have struggled to gain momentum year to date. Concerns about China's economy and U.S.–China tensions have weighed on sentiment for China-exposed stocks like Baidu. Unlike Baidu, Alibaba's shares have been on a bullish tear, climbing 42.4% so far this year. Image Source: Zacks Investment Research Meanwhile, Baidu's underperformance has left the stock looking quite cheap. At roughly the mid-$80s per share, Baidu trades at about 7.84X forward 12-month P/E ratio compared with BABA's 11.13X. Image Source: Zacks Investment Research Over the past 30 days, the Zacks Consensus Estimate for Baidu has remained unchanged, while that for Alibaba's current-year earnings per share (EPS) has decreased, as you can see contrast in growth rates is notable — for the current year, the analysts expect BIDU's revenues to rise 2.2% to $18.9 billion and EPS to decline 4.3% to $10.08. BABA is expected to witness its revenue grow 3.8% to $143.4 billion and EPS grow 17.9% to $10.62. Alibaba's growth momentum and profitability heading into 2025 look solid, giving it plenty of financial firepower to continue investing in AI and other growth areas. This justifies its premium valuation. For Baidu Stock Image Source: Zacks Investment Research For Alibaba Stock Image Source: Zacks Investment Research Both Baidu and Alibaba stocks currently carry a Zacks Rank #3 (Hold). Both Baidu and Alibaba are positioning themselves as leaders in the rapidly expanding AI space, but they do so in different ways. Baidu's focus on autonomous driving and AI-powered cloud services is a bold, high-risk, high-reward strategy. Its valuation is attractive, especially considering the long-term potential of its AI and autonomous driving businesses. However, the company is more dependent on regulatory outcomes in China, which adds some volatility to its prospects. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks the other hand, Alibaba benefits from a diversified business model that includes e-commerce, logistics, and cloud computing, giving it multiple revenue streams that can support AI investment initiatives. While Alibaba's AI investments are not as bold as Baidu's autonomous driving ventures, its integrated approach in e-commerce and logistics gives it a more secure foundation for growth. The company's international exposure also provides an edge, particularly in a growing market like Southeast Asia. In conclusion, both stocks have strong AI-driven growth stories, but the edge goes to Alibaba for its diversified business model, consistent revenue generation from e-commerce, and international growth opportunities. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Baidu, Inc. (BIDU) : Free Stock Analysis Report Tencent Holding Ltd. (TCEHY) : Free Stock Analysis Report Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
21-04-2025
- Business
- Mint
DeepSeek's AI surprised the world. China's universities are the talent source.
In the global contest for artificial intelligence supremacy, the U.S. and China are often portrayed as the primary contenders. While the U.S. maintains a lead in AI innovation, China is rapidly closing the gap, driven by a surge in research output, substantial investments, and strategic governmental policies. 'It is not surprising that China now competes closely with the U.S. for leadership in AI talent. It trains by far a larger number of engineers and computer scientists than the U.S., although the U.S. still has an edge in attracting the best global talent, including from China," said Victor Shih, director of the 21st Century China Center at the University of California, San Diego. 'For now, the capital market for start-ups in the U.S. still functions much better than in China, but if the current turmoil turns into a prolonged recession, that advantage will be eroded," he told Barron's. China leads globally in the number of AI-related publications and patents, according to Stanford University's 2025 AI Index. This great leap is bolstered by significant government support and a strategic vision aiming for tech self-sufficiency. A pivotal moment in China's AI trajectory was the emergence of DeepSeek's R1 model, which rivals top U.S. models despite limited access to advanced computing resources—particularly semiconductor chips—due to U.S. export restrictions. DeepSeek's success intensified domestic competition—tech giants in China and start-ups tied to China's elite universities are vying for dominance in the sector. The landscape is characterized by fierce competition among established tech conglomerates—often referred to as the 'BAT" trio: Baidu, Alibaba Group Holding, and Tencent Holding—and a new wave of dynamic start-ups. Companies like Zhipu AI, MiniMax, and Moonshot AI have rapidly gained prominence, earning the nickname 'AI Tigers" from investors. These start-ups aren't only innovating at breakneck speed but are also attracting substantial investments, signaling a robust and competitive ecosystem. Tencent, for instance, has upgraded its Hunyuan T1 model to compete with DeepSeek and Alibaba. Baidu has launched new models, ERNIE 4.5 and ERNIE X1, which it plans to integrate into China's most popular search engine. This internal competition is further amplified by the open-source approach adopted by many Chinese firms. While open-sourcing AI models fosters collaboration and accelerates innovation, it also raises questions about revenue generation and potential exploitation by international competitors. Chinese universities have become pivotal to the nation's AI advancement, significantly contributing to research output and talent cultivation. Recent data place Peking University, Tsinghua University, and Zhejiang University at the top of the charts in AI research publications. Notably, Peking University has topped global lists of institutions ranked by AI research output since 2022, according to AIRankings. Peking University's AI institute said it referred requests for comment to professors, though none replied. Tsinghua University and Zhejiang University didn't respond to requests for comment. The success of AI start-ups like DeepSeek can be attributed, in part, to the robust talent pool emerging from these universities. DeepSeek's founder, Liang Wenfeng, is a graduate of Zhejiang University, and the company's team comprises young scientists, many of whom are fresh graduates from institutions such as Tsinghua and Peking University. This collaboration between academia and industry facilitates a seamless transition from cutting-edge research to real-world AI applications. 'When I was at Beida [Peking University], AI students were leaving or finishing their coursework to start companies—you'd hear about something new like every week," said James Liu, who is now pursuing a doctorate at MIT after receiving his bachelor's degree in China. Despite these advancements, China's AI sector faces significant challenges. U.S. export restrictions have limited China's ability to procure high-end AI chips, compelling domestic companies to seek alternatives and innovate with available resources. This constraint has spurred efforts to develop indigenous chip-making capabilities, but achieving parity with global leaders remains formidable. Moreover, the intense domestic competition necessitates strategic collaborations and a focus on niche areas to differentiate offerings. Companies are increasingly forming partnerships, both domestically and internationally, to leverage complementary strengths and navigate the complex AI landscape. Zhu Songchun—arguably the most renowned figure in the Chinese AI world—returned to China from the University of California, Los Angeles, in 2020 to head Peking University's Institute for Artificial Intelligence and its School of Intelligence Science and Technology. At a recent conference in Beijing, his keynote address summarized the zeitgeist. 'Creating world-class technology through Chinese thinking is our goal and our responsibility," he said. 'China is fully capable of taking the initiative in the era of general AI." Write to editors@
