Baidu CEO Robin Li emphasized the ongoing need for investment in cloud infrastructure and data centers despite the recent success of DeepSeek, a Chinese AI startup. Speaking at the World Government Summit in Dubai on Tuesday, Li highlighted that while DeepSeek has demonstrated impressive efficiency in developing language models using less computing power, the demand for greater computational resources remains crucial.
“The investment in cloud infrastructure is still very much required. To develop models smarter than others, you need more compute,” Li stated, referring to the hardware that enables AI models to train, process data, and generate predictions.
DeepSeek has captured global attention for creating language models that rival leading systems like OpenAI’s GPT while utilizing significantly lower computational resources. This innovation has raised questions about the necessity for massive infrastructure investments, which has been a focal point of many AI companies’ strategies.
Baidu, one of the first Chinese companies to introduce AI products after the launch of OpenAI’s ChatGPT in late 2022, has developed its large language model, Ernie, which the company claims matches the capabilities of GPT-4. However, Ernie has seen limited adoption in the market.
Li, known for making bold statements about China’s AI industry, acknowledged the unexpected nature of innovation, citing DeepSeek’s rapid success as an example. “You just don’t know when and where innovations come from,” Li remarked.
The CEO also noted that the pressure to reduce costs and overcome compute constraints has driven Chinese companies like Baidu to innovate more efficiently. In an apparent shift from his earlier stance, Li recognized the potential of open-source approaches to accelerate AI development. “If you open things up, many people will be curious enough to try it. This will help spread the technology much faster,” he added.