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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.

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

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.

France, UAE Agree to Build $30-$50 Billion AI Data Centre

France and the United Arab Emirates (UAE) reached a framework agreement on Thursday to establish a 1-gigawatt artificial intelligence (AI) data centre, representing an investment of between $30 billion and $50 billion, according to the French presidency.

The deal was finalized during a meeting between French President Emmanuel Macron and UAE President Sheikh Mohamed bin Zayed al-Nahyan. The two leaders met ahead of an AI summit scheduled for February 10-11 in Paris, which will bring together representatives from about 100 countries to explore AI’s potential and discuss strategic initiatives.

The summit aims to bolster France and Europe’s position in AI, as they seek to compete with the U.S. and China, both leaders in the development of energy-intensive AI technologies.

In a joint statement, Macron and Sheikh Mohamed expressed a shared commitment to forming a strategic partnership in AI. The partnership will encompass investments in both nations’ AI ecosystems, the acquisition of advanced chips, development of data centres, talent cultivation, and the creation of virtual data embassies to support sovereign AI and cloud infrastructures in France and the UAE.

The first announcements on investments under this partnership will be made later this year at the “Choose France” summit. Meanwhile, the French government has identified 35 potential locations for AI data centres across the country.