I remember that my Economics teacher told us that business competition is important to avoid exploitation. This does not mean that innovation pioneering should not be appreciated. It should, but when other innovators join the race, things would approach balance. I was searching for recent innovations in AI to discuss with my Tech studens when I read this news by CNBC on the intention of China's leading search engine company, Baidu, planning to launch its next-generation AI in 2025.
The interesting thing here is that the race for artificial intelligence dominance is intensifying at the global level. China and the United States are emerging as the two main contenders. While the U.S. has long been a leader in AI innovation, fueled by its strong tech industry and research institutions, China is rapidly closing the gap with ambitious government policies, massive data resources, and strategic investments in AI development.
Baidu to launch AI model
Baidu is preparing to launch the next generation of its AI model in the latter half of this year. This development is motivated by the rapid advancements in the AI sector , particularly with the emergence of innovative players like DeepSeek. Before now, Baidu has been at the forefront of AI research and development in China. The company introduced Ernie Bot, an AI chatbot service, in 2023, built upon its large language model, ERNIE, which has been evolving since 2019. The latest iteration, ERNIE 4.0, was announced on October 17, 2023, showcasing Baidu's commitment to advancing AI capabilities.
In November 2024, Baidu unveiled several new applications for its AI technology. At the Baidu World Conference, CEO Robin Li introduced I-RAG, an enhanced text-to-image generation technology designed to address accuracy issues in image generation. Additionally, Baidu launched Miaoda, a tool that enables users to develop software applications without extensive coding expertise, and a pair of AI-powered glasses developed by its hardware division, Xiaodu. These glasses feature built-in AI assistants, cameras, and support voice interactions powered by ERNIE.
DeepSeek sets the tone for Competition
With Chinese DeepSeek making a disruptive entry with its latest model, R1 which performs on par with OpenAI's models while utilizing less advanced computer chips and consuming less energy, the AI industry has been notably shaken. The possibility of creating something out of the blue is has been narrated by DeepSeek.
[Image created on Chat GPT]
DeepSeek's development has raised concerns that China may have overtaken the U.S. in the AI race, despite facing restrictions on access to advanced chips. DeepSeek's emergence shows China's rapid advancements and ambitions in the global AI arena, with a national goal to become the world leader in AI by 2030. So far, China is investing billions into AI development and the semiconductor industry to build its capacity to produce advanced computer chips. The government has also established regulations governing AI, addressing safety, privacy, and ethics, ensuring that AI models align with the Communist Party’s guidelines.
Market reactions and the future
The advancements by companies like Baidu and DeepSeek have caught the attention of investors. Some Asian hedge funds are betting on leading Chinese tech companies, buoyed by their AI innovations, despite the threat of further U.S. curbs. Fund managers are particularly optimistic about growing AI adoption in the daily lives of China's 1.4 billion people, from mobile phones and smart wearables to social apps and games.
As Baidu prepares to release its next-generation AI model later this year, the company is determined to further solidify its position in the AI sector. The rapid advancements by Chinese firms like Baidu and DeepSeek is a proof that the nation is committed to lead the global AI race, and set the stage for intensified competition and innovation in the years to come.
While thinking of this development, It's likely that I will consider splitting my Tech group into two to help each group try thinking outside the box in their tech-learning journey.