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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.

China’s BYD Cuts Entry Price for Smart EVs, Sparking Potential Price War

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China’s electric vehicle giant, BYD, made waves on Monday by launching its advanced autonomous driving features on a wide range of models, with prices starting as low as $9,555. This aggressive move, which analysts predict will ignite a price war, significantly undercuts competitors like Tesla. BYD now offers its proprietary “God’s Eye” advanced driver-assistance system (ADAS) on models priced above 100,000 yuan ($13,688), with three models priced below 100,000 yuan, starting at just 69,800 yuan for the Seagull. These new models went on sale immediately following the event.

Previously, BYD only included these high-tech features in EVs priced from $30,000. In comparison, Tesla offers similar features in China on vehicles starting at $32,000. This shift marks a significant democratization of technology, as BYD aims to make smart driving accessible to a broader audience. “Technology does not need to be high-end, and they can fight a price war here,” said Yale Zhang, managing director at Automotive Foresight.

BYD’s move is likely a strategic response to sales plateauing, as the company reached 4 million units sold last year. Industry expert John Zeng from GlobalData believes that smart driving technology could elevate BYD’s sales and put pressure on competitors, especially brands like Xpeng, which may struggle to offer similarly priced EVs with comparable smart features.

The introduction of these affordable smart driving cars comes after a period of aggressive price cuts by BYD, which had already stirred a price war in China’s automotive market. Shares of BYD surged 16% after reports of the smart driving plans surfaced. The company’s founder, Wang Chuanfu, suggested that smart driving will become as essential as seatbelts and airbags, pushing China’s AI-driven auto industry forward. The integration of DeepSeek’s AI models into BYD’s Xuanji smart car platform adds an additional layer to its technological advancements.

Europe’s Privacy Watchdogs to Discuss DeepSeek Amid Data Privacy Concerns

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European Union data protection authorities are set to discuss concerns surrounding the Chinese artificial intelligence startup DeepSeek during their monthly meeting on Tuesday, according to the meeting agenda. The discussions arise amid growing scrutiny of how DeepSeek handles personal data, especially regarding European users.

DeepSeek made waves globally last month by showcasing its ability to compete with major U.S. tech firms in human-like reasoning technology, while offering services at a significantly lower cost. However, concerns have been raised by several European privacy regulators about whether the company is using personal data from European citizens to train its AI models and if such data could be transferred to China.

The European Data Protection Board (EDPB), based in Brussels, has scheduled a session to address DeepSeek’s activities. During the meeting, national data protection authorities will share information on the actions they’ve taken in response to DeepSeek’s operations. Marie-Laure Denis, president of the French privacy watchdog CNIL, emphasized that the goal of the meeting is to harmonize responses and share insights on how to address privacy risks posed by the company.

The CNIL confirmed that it had reached out to DeepSeek for clarification on how the company’s AI system operates and whether there are any potential privacy risks for users. Ireland’s data protection authority has also sought further information from the Chinese startup. Meanwhile, Italy’s data watchdog has taken more drastic action, ordering DeepSeek to block its chatbot in the country due to non-compliance with privacy concerns over its policy.

Europe has been known for its strong stance on data privacy, with its General Data Protection Regulation (GDPR) considered one of the strictest data protection laws in the world. The scrutiny of DeepSeek highlights the region’s commitment to safeguarding user privacy amid the rapid growth of AI technologies.