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China’s Manus AI Forms Strategic Partnership with Alibaba’s Qwen Team

On Tuesday, Manus AI announced a strategic partnership with the team behind Alibaba’s Qwen AI models, a move aimed at strengthening the artificial intelligence start-up’s goal of deploying the world’s first general AI agent. Unlike traditional chatbots, which respond to user inputs, an AI agent can operate autonomously, executing tasks with minimal human intervention.

Manus AI, which officially launched last week, claimed that its performance surpasses that of OpenAI’s DeepResearch, a popular AI agent. The launch garnered significant attention on Chinese social media, with many comparing Manus AI to DeepSeek, a product by the Hangzhou-based creators of DeepSeek, which surprised Silicon Valley with a cost-effective AI chatbot that rivaled OpenAI’s best.

The partnership with Qwen could create further disruption in the AI industry, which is still reeling from DeepSeek’s emergence. Manus AI, which is part of Beijing Butterfly Effect Technology Ltd Co with offices in Beijing and Wuhan, has been promoting its product by completing various tasks for users for free on the social media platform X. However, the AI agent remains available by invitation only, and the company has admitted that its website is facing technical difficulties due to increased traffic.

The collaboration with Alibaba’s Qwen team is expected to help Manus AI handle the traffic surge and expand its user base. Meanwhile, Alibaba aims to enhance its competitiveness against rivals such as DeepSeek. The two companies plan to integrate Manus AI’s functions with Qwen’s open-source models and AI platforms in China, as announced on Weibo.

A spokesperson for Alibaba confirmed the partnership and expressed enthusiasm about collaborating with more global AI innovators. The Qwen team had previously responded to DeepSeek’s global success by releasing a model they claimed surpassed DeepSeek-V3, further intensifying the competition in the AI space.

Baidu Set to Launch Next-Gen AI Model “Ernie 5” in 2025

Baidu, China’s leading tech company, is poised to unveil the next iteration of its AI model, Ernie 5, in the second half of 2025, according to a source familiar with the matter. The new model will introduce multimodal capabilities, enabling it to handle and convert various formats, including text, video, images, and audio.

This launch comes at a time of fierce competition in China’s AI sector, especially from the startup DeepSeek, which has gained attention for offering a reasoning model that competes with OpenAI’s GPT at a lower cost. Despite being an early adopter in AI with its Ernie model, Baidu has faced challenges in achieving widespread adoption, even though it claims that Ernie 4 rivals the capabilities of GPT-4.

Baidu’s AI models have lagged behind domestic competitors, including ByteDance’s Doubao chatbot and DeepSeek, in terms of user uptake. Baidu CEO Robin Li acknowledged at a recent Dubai conference that the rise of DeepSeek highlights the unpredictable nature of innovation. He also noted that investment in data centers and cloud infrastructure remains essential, even though DeepSeek has shown that AI models can be made more cost-efficient.

OpenAI Explores U.S. Data Center Sites for Stargate AI Project Amid China Competition

OpenAI announced on Thursday that it is evaluating several U.S. states as potential locations for data centers supporting its Stargate AI venture. The initiative is positioned as a strategic move to maintain U.S. leadership over China in the AI race.

Chris Lehane, OpenAI’s chief global affairs officer, highlighted the competitive urgency. “With the emergence of DeepSeek, it’s clear this competition is serious. Whoever prevails will shape the future, whether it’s democratic and open AI or authoritarian and autocratic AI,” he said.

Stargate, unveiled by U.S. President Donald Trump last month, represents a private sector AI infrastructure investment of up to $500 billion. Funded by SoftBank, OpenAI, and Oracle, the project has already committed $100 billion for immediate deployment, with further investments to roll out over the next four years.

Sixteen U.S. states have expressed interest in hosting Stargate data centers, with Texas designated as the flagship location. The first data center, under construction in Abilene, Texas, is being developed by startup Crusoe and is expected to be partially operational later this year. Keith Heyde, leading site selection for Stargate, said, “We are looking at five to ten sites for our campus footprint.”

However, the emergence of China’s low-cost DeepSeek AI model has cast doubt on the assumption that large-scale, specialized data centers are essential for AI advancement. DeepSeek researchers claimed they trained their model on less sophisticated chips at a fraction of the cost required by American AI models.

This development sent shockwaves through global markets. Investors reacted by dumping tech stocks, particularly Nvidia, the leading AI chipmaker, wiping out $593 billion of its market value—the largest one-day loss ever recorded on Wall Street.