Chinese tech giant Baidu to release next-generation AI model this year as DeepSeek shakes up market

Published On Feb 11, 2025, 11:30 PM

Baidu, the Chinese tech giant, is set to release its next-generation AI model, Ernie 5.0, in the second half of this year. This update comes as competition increases among Chinese firms to innovate in AI technologies, particularly following a breakthrough from the startup DeepSeek. The new model will enhance technologies that can understand and generate multiple forms of media, including text, images, and video. Despite Baidu's earlier lead with its Ernie chatbot, it has since faced stiff competition from other major players, including Alibaba and ByteDance, in the AI sector.

Stock Forecasts

BIDU

Positive

Baidu's upcoming release of the Ernie 5.0 model and the improvements promised (especially in cutting inference costs and increasing productivity) may lead to renewed investor interest. As the AI sector expands, Baidu's efforts to stay competitive could be seen as a positive sign for its stock in the long term. However, its current slower growth relative to peers like Alibaba might still impact short-term investor sentiment.

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