Forget DeepSeek! China Set to Make Its Biggest Move Yet in Artificial Intelligence
China’s tech company Baidu has announced the launch of its Large Language Model-based AI platform, Ernie, as open source — a move that could bring major changes to the global AI industry.
Following DeepSeek, this marks another significant step by China in the world of artificial intelligence. Baidu has confirmed that its Ernie model will be made available as an open-source platform. This is being considered one of China’s biggest efforts in AI so far.
Industry experts caution that comparing DeepSeek and Ernie at this stage may be premature. Baidu had previously focused on proprietary technology, avoiding open-source models. However, DeepSeek has shown that open-source models can be just as powerful and reliable. Now, Baidu seems to be shifting its strategy.
Global Impact on the AI Industry
“When a major lab open-sources a powerful model, it raises the bar for the entire industry,” said Shawn Ren, a professor at the University of Southern California, in an interview with CNBC. He added that Baidu’s decision puts pressure on companies like OpenAI and Anthropic, which charge premium prices for their closed models.
Ren also pointed out that customers are more concerned with performance, affordability, and regional language support than whether a model is open-source. Open models give developers the flexibility to customize and innovate quickly.
Is a Price War Coming?
The report also highlights that Baidu’s entry could shake up the AI industry. Firms like OpenAI, Anthropic, and DeepSeek, which charge high prices for their technology, may now face stiff competition as Baidu offers similarly powerful models for free.
In March, Baidu claimed that its new Ernie X1 model performs on par with DeepSeek R1 but at nearly half the cost. Baidu CEO Robin Li stated earlier this year that the move is aimed at helping developers worldwide build better applications.