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

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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.

Apple Partners with Alibaba to Introduce AI Features for iPhones in China

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Apple has partnered with Alibaba to launch artificial intelligence features for iPhone users in China, a move aimed at addressing months of uncertainty over Apple’s AI strategy in the region, according to The Information. The collaboration could help Apple regain its competitive edge in the Chinese market, where it has been losing ground to local rivals such as Huawei, which has already incorporated AI tools into its smartphones since last year.

Apple’s stock rose by 1.5% following the news, while Alibaba’s U.S.-listed shares saw a 2.6% gain. Apple had initially chosen Baidu as its AI partner, but the Chinese company’s progress in developing models for Apple Intelligence did not meet Apple’s standards. As a result, Apple considered various other AI models from Tencent, ByteDance, Alibaba, and Deepseek but ultimately chose Alibaba for its ability to leverage vast amounts of user data related to shopping and payment habits, which could enhance model training and enable more personalized services.

The Chinese AI features co-developed by Apple and Alibaba are now under review by China’s cyberspace regulator for approval. This development is crucial as Apple’s iPhone sales declined during the holiday quarter, typically its best-performing period, largely due to the absence of AI features in its latest devices. Apple remains optimistic, forecasting strong sales growth for the current quarter.

Baidu CEO Stresses Continued Investment in Cloud Infrastructure Despite DeepSeek’s Success

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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.